Mississauga Real Estate, Homes, TREB & MLS Blog by Mark Argentino

Downtown Toronto Taxes are highest in Country!

Even before Toronto announced its latest property tax hikes yesterday, Toronto took the dubious honour for having the highest property taxes in Canada, according to a detailed report issued by the city of Edmonton. Together with Ottawa, Brampton, Hamilton and London, Ontario municipalities take five of the top six spots on the list. This is something most homeowners in these cities know intuitively every time they pay their tax bill. Now they have it confirmed by an objective report that compared more than 30 municipalities across Canada.

Toronto ranked first with the highest taxes paid at $3,912, followed by Brampton at $3,826. Ottawa was third at $3,532; Hamilton and London were fifth and sixth at $3,305 and $3,078 respectively. St. John's, Newfoundland, deserves credit for taking last place with the lowest average tax at $1,540, and Surrey, BC was second last at $1,814.

This sad but helpful property tax news is timely as city councils across Ontario prepare their budgets. As well, Premier McGuinty's freeze on assessments for homes expired at the beginning of 2008. Not only will tax rates be going up, but for the first time in a few years homeowners will take a second hit if their home value reassessment shows an increase above the average increase. Assessment changes will take effect for 2009 property tax rates.

What is especially helpful about the Edmonton report is that it compares property taxes in a dollar value instead of as a percentage. Some mayors, like Toronto's Mayor Miller, try to defend high property taxes by hiding behind what appears to be a lower rate than other cities. This is hiding because the average value of a home is high in Toronto so the total taxes paid for a Toronto homeowner are higher. When paying taxes one cares less about the rate paid or the details of the complicated formula used. Instead, one cares about how much money is being taken year over year. That is the only comparison relevant to a taxpayer, not whether the rate is 0.82 in one city versus 1.15 in another city.

The main reason for high and growing property taxes in Ontario is that municipal spending is out of control. Municipalities have a spending problem, not a revenue problem. While mayors continue to clamour for more and more money from many sources, their appetites for spending grow unchecked.

Data from Statistics Canada shows that municipal revenue across Ontario has been running at three times the rate of inflation. In 2006 municipal revenue was up 6.3% while inflation was only at 2.0%; in 2005 revenue was up 7.2% and inflation was only 2.2%. Despite Ontario municipal revenues ballooning from higher taxes, more transfers from other levels of government, higher user fees and new taxes in Toronto; mayors continue to complain that they don't have enough.

It is interesting how mayors can work together cooperatively when it comes to demanding transfers from other levels of government or getting new taxing authority from the province. If that same energy were transferred to creating efficiencies and reducing costs, the report out of Edmonton might show a different -and welcome -conclusion.

Read more about prices http://www.mississauga4sale.com/TREBprice.htm

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: house trends, housing prices, Toronto Market Watch, TREB real estate

Read more!

Canada's Housing Market Outlook for 2008

Canada's Housing Market

"What remains the greatest source of weakness in today's U.S. economy is a continued source of strength in Canada," says Warren Lovely of CIBC World Markets in a recent report. "While the U.S. housing market is mired in deep recession, Canada's own housing market has demonstrated extraordinary resilience."

This week the Canadian Real Estate Association (CREA) predicted that national home sales will rise to 8.1 per cent in 2007, setting an all-time sales record. Prices are also expected to go up by a whopping 10.4 per cent in 2007, with another 5.5 per cent increase in 2008.

"Resale housing activity was a juggernaut in the second quarter of 2007," says CREA's chief economist Gregory Klump. "Record breaking sales activity in the first and second quarters forced CREA to revise its forecast upward."

Although you'd expect the trade association to produce a rosy forecast, it's not much different that the latest prediction from the country's federal housing agency, Canada Mortgage and Housing Corp. (CMHC). It's also expecting a new sales record in 2007, an increase of 6.5 per cent compared to 2006. CMHC says prices will increase by 9.9 per cent this year and 5.2 per cent in 2008.

Why is the Canadian housing market still so strong? The economic fundamentals that have carried this housing boom for several years continue to be in place. They include record-high employment rates, rising incomes and strong consumer confidence.

In addition Subprime Mortgage Crisis Not Likely to Spread to Canada and Canadians do not have the same exposure in the subprime mortgage market that has come back to haunt U.S. home buyers.

However, the recent shocks to the stock market may change the Bank of Canada's plans to hike interest rates again in the near future. CMHC says that one, three and five-year posted mortgage rates will be in the 6 to 7, 6.25 to 7.25, and 6.50 to 7.50 per cent ranges respectively for the rest of this year and in 2008.

In analyzing CREA's sales figures for July, Porter says that 17 of the 25 reporting cities posted double-digit sales gains compared to last year. "All cities west of Lake Superior reported double-digit price increases last month, led by the 53.7 per cent sprint in Saskatoon," he says. "However, the price surge is not confined to Western Canada, as Hamilton, Sudbury and Quebec City have also posted double-digit increases. Meanwhile, the previously white-hot Alberta markets are showing some signs of simmering down. Sales in both Calgary
and Edmonton fell, while inventories climbed last month. In particular, while average prices in Edmonton are still up a whopping 38 per cent year-to -year, sales fell 21 per cent and new listings almost doubled. That combination points to a market headed for a correction."

Prices are forecast to increase by 17.4 per cent in Saskatchewan, 11.2 per cent in Manitoba, 9.9 per cent in B.C., 9.2 per cent in Nova Scotia, and 8.6 per cent in Ontario this year.

Read more!

More signals that our real estate market is cooling a little

The Canadian Home Sales are not as strong as they were in January of 2007l

The Canadian housing market continues to gradually lose steam after a prolonged show of strength. Today's January existing home sales data from the Canadian Real Estate Association show that resale activity faded 0.4% from the prior month—which was already somewhat on the softer side of recent trends—and sales were down 8% from a year ago as well. That's a massive turnaround from last year's 7.6% rise in overall sales.

The lousy weather may have played a small role in restraining sales last month, although it's not as if January is typically a treat on that front. As Canadian sales have lost a bit of momentum recently, we may finally be seeing some signs of cooler price gains as well: Average home prices were up 8.6% from year-ago levels in January, compared with an average increase of 11% for all of last year.

The yearly price rise is somewhat skewed by the mammoth 69% and 37% jumps in Regina and Saskatoon (respectively), although at least 12 cities reported double-digit gains last month.

The previously steaming hot Alberta markets continue to cool considerably, and are now acting as a significant drag on the overall sales figures. Sales in Calgary (-30.9% y/y) and Edmonton (-21.0% y/y) fell steeply from a year ago, while new listings continue to rise sharply. That's not a favourable backdrop for prices, and both have seen price increases dip into single-digit terrain.

The Bottom Line: With the further dip in January, Canadian home sales are now well below year-ago levels, adding further evidence that the great boom is winding down. Sagging affordability appears to have finally dug into activity, most notably in Alberta.

Still, prices across most of the country remain well above year-ago levels and most markets are well balanced, so we're not looking at serious strains in the housing market. Modest interest rate relief will also provide a helping hand.

see Graph of Average GTA prices

Read more!

FEBRUARY GTA Real Estate Report - Strength in central Toronto drives the market to a healthy start!

FEBRUARY GTA Real Estate Report - Strong performance in central Toronto drives the market to a healthy start!

New Year Off To Good Start

February 5, 2008 -- A strong performance within TREB's Central districts drove the Toronto area real estate market to a healthy 5,073 sales in January, off just two per cent from last year's record performance, President Maureen O'Neill announced today.

"While sales were strong, price increases remained modest, with the average rising six per cent to $374,449," said Ms. O'Neill. "There is clearly still a place for the first-time buyer in today's resale market."

NEIGHBOURHOOD CORNER Mississauga

There were 647 sales in Mississauga this January, a decline of three per cent over the first month of 2007. The average price came in at $339,655, a one per cent increase over the same time-frame last year. Of these sales, 196 were of detached homes which averaged $516,190, up eight per cent over January '07.

Read more about Price Trends

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: housing prices, Toronto Market Watch, TREB average prices toronto 2008, TREB real estate

Read more!

Condo prices on the rise in Toronto and GTA

Condo Prices outpace Detached homes in parts of the GTA in 2007

For the first time, the average price of a condominium in some GTA districts last year rose at a higher rate than single-detached houses.

In the GTA's central core district, the average condo price in 2007 jumped by 12.2 per cent (to $327,559 from $292,064), according to Re/Max Ontario-Atlantic Canada. In the same year, the average price for single-detached homes in the same district went up by 11.5 per cent (to $910, 906 from $816,938).

In the west end, condo prices increased by 7.3 per cent, single-detached prices by 6.6 per cent.

"Condominiums are clearly a viable and now financially feasible alternative to single-detached housing," says Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada.

Condo prices rose by double-digit amounts in 12 of 63 Toronto Real Estate Board districts in the GTA last year, Re/Max said in a statement. The best-performing district was Bayview Village, where average condo prices jumped by 40.8 per cent (to $340,113 from $241,611).

As for single-detached homes, their average prices increased by double-digit amounts in 13 of those 63 TREB districts, led by Forest Hill, where the average price climbed by 21.1 per cent (to $1,028,960 from $849,697).

Read more!

USA Real Estate Round Up for 2007 from NAR

This is what NAR just reported: 2007 Existing-home Sales Fifth Highest

Existing-home sales declined in December following several months of stable activity, with total sales in 2007 still at the fifth highest on record, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales including single-family, townhomes, condominiums and co-ops slipped 2.2 percent to a seasonally adjusted annual rate of 4.89 million units in December from a pace of 5 million in November, and are 22 percent below the 6.27 million-unit level in December 2006.

For all of 2007 there were 5,652,000 existing-home sales, the fifth highest year on record. However, the total was 12.8 percent below the 6,478,000 transactions recorded in 2006.

Lawrence Yun, NAR chief economist, says the market is experiencing uncharacteristic weakness.

"Home sales remain weak despite improved affordability conditions in many parts of the country, but we could get a quick boost to the market if loan limits are raised in combination with the bold cut in the Fed funds rate," he says. "Home prices are lower, mortgage interest rates continue to decline and incomes are higher, but many potential buyers are delaying a purchase."

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.10 percent in December from 6.21 percent in November; the rate was 6.14 percent in December 2006. Last week, Freddie Mac reported the 30-year fixed rate dropped to 5.69 percent.

"Although interest rates on jumbo loans have fallen somewhat, they remain well above conventional mortgage rates," Yun says. "It isn't surprising that the share of single-family homes selling for more than $500,000 fell to 12.4 percent of transactions in December from 14.2 percent a year ago."

Read about our marketplace: Price Trends

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: house trends, housing prices, Interest Rates, Real Estate Market

Read more!

RE/MAX Reports Condominium appreciation outpaced single-detached housing

New Report from RE/MAX Condominium appreciation outpaces single-detached housing
values in key GTA districts in 2007, says RE/MAX

Mississauga, Ontario (January 23, 2008) Condominiums experienced unprecedented upward pressure on average price in 2007, surpassing gains reported in the single-detached category for the first time in key GTA districts, including the central core and west end.

According to RE/MAX Ontario-Atlantic Canada, the average price of a condominium rose 12.2 per cent in the central core in 2007 ($327,559 vs. $292,064) while values in the west end jumped 7.3 per cent from $215,036 to $230,749. Statistics for single-detached homes reveal an 11.5 per cent increase in average price in the central core ($910,906 vs. $816,938) and a 6.6 per cent increase in the west ($417,407 vs. $444,945) during the same period.

"Condominiums are clearly a viableand now financially feasiblealternative to single-detached housing," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada.

"With so many purchasers forced to compromise on their choice of housing, the ever-growing return on investment in the condominium market is proving to be quite the consolation prize."

Despite higher prices across the boardapproximately 20 per cent, or 12 of 63 Toronto Real Estate Board Districts, experienced a double-digit increase in average price in 2007the condominium lifestyle allows purchasers to live in the GTA's most coveted communities at a fraction of the price of a single-detached home.

The best performing markets in 2007 include top-ranking Bayview Village (C15), leading with a 28.9 per cent increase in average price year-over-year ($241,611 vs. $340,113); Yorkville, Annex (C02) in second place with a 23.9 per cent increase ($494,861 vs. $650,379); and Rosedale, Summerhill (C09) in third place, with values 17.2 per cent ahead of 2006 figures ($462,067 vs. $558,435).

Forest Hill, Deer Park (C03) and Swansea, Roncesvalles, South Parkdale (W01) both tied at 14.8 per cent$514,823 vs. $604,924 and $246,900 vs. $289,872 respectively claiming fourth place, while SE Mississauga, Applewood, Rathwood (W14) rounded out the top five at 14.6 per cent ($180,279 vs. $211,185).

"Condominiums now outsell single-detached homes two to one in the central core," explains Polzler.

"Condo sales have accounted for an increasing percentage of the marketplace in the central, west, and northern districts since 2005. The trend is expected to continue as affordability levels diminish, particularly in the central core. It's also important to recognize that the vast majority of these purchasers are end-users and speculation is a rare occurrence in the resale condominium market."

Although they carry some pretty hefty price tags, single-detached homes continued to post solid gains as well, with approximately 21 per cent or 13 of 63 Toronto Real Estate Board districts, reporting increases over 10 per cent in 2007. The best return on investment occurred yet again in proven blue chip neighbourhoods. Forest Hill (C03) led the way with a 17.4 per cent increase in average price in 2007, rising from $849,697 in 2006 to $1,028,960. Leaside (C11), Lansing, Willowdale (C07), and Bathurst Manor, Armour Heights (C06) placed second, third and fourth, with prices rising 14.2 ($791,083 to $922,607), 13.4 ($537,891 to $621,185), and 12.2 per cent ($523,736 to $596,551) respectively year-over-year. Thriving Port Credit (W12) placed a strong fifth with a percentage increase of 11.7 per cent in average price, bringing single-detached housing values in the area to $577,461 from $509,380 in 2006.

"When it comes to bricks and mortar, homeownership can be cost-prohibitive," says Polzler. "The surge in condominium sales and prices is a glimpse at the future. Not only is the condo lifestyle more widely accepted, it is also highly coveted by many. Location, price, amenities, views, low-maintenance livingit's the ideal package for a growing number of purchasers. As such, price growth and demand are expected to continue strong into 2008. "

RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated throughout its more than 640 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 34th year of consecutive growth, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage 120,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management. For more information, visit: http://www.remax.ca/.

read more about Price Trends at my site

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: Condos, house trends, housing prices, remax

Read more!

Canadian Home Sales: House of the Rising Price

Canadian Home Sales: House of the Rising Price

After a blockbuster year, the Canadian housing market showed some early signs of fatigue as 2007 wore down. Today's December existing home sales data from the Canadian Real Estate Association show that resale activity faded 2.5% from the prior month and was a bit below year-ago levels as well. That's a big turnaround from the steady stream of solid gains through most of last year, which lifted sales to a record annual high and a hefty 7.9% above year-ago levels for all of 2007.

Last year's increase stands in stark contrast to the estimated 12.6% drop in U.S. existing home sales. And while Canadian sales may have lost a bit of momentum late in the year, prices just kept chugging right along. Average home prices were up 13.1% from year-ago levels in December, with 13 of 24 cities reporting double-digit increases. Average price gains have been somewhat skewed up by the mammoth 46% jumps in Regina and Saskatoon, but even the median city saw a 10.4% y/y price increase in December.

All cities west of Lake Superior reported double-digit price increases last year, with Saskatchewan cities firmly taking the baton from Alberta. However, price gains seemed to fade a bit right at the end of the year in Winnipeg and Vancouver. Elsewhere, prices actually gained speed at the end of 2007, despite the growing pressure on central Canada from the surge in the loonie and slowing U.S. growth. Toronto, Ottawa, Sudbury and Quebec City were among those cities in Ontario and Quebec that posted double-digit price gains from a year-ago last month.

Meantime, the previously steaming hot Alberta markets cooled further sales in both Calgary and Edmonton fell steeply from a year ago (Calgary down 27.8% y/y, Edmonton down 20.2% y/y), while new listings continue to rise. That's not a favourable backdrop for prices, although both are still hanging onto double-digit price gains as of December. Still, who would have believed at the start of 2007 that Toronto home prices were poised to rise faster in the next twelve months than in any of Calgary, Edmonton or Vancouver?

The Bottom Line: Even with the slight sag in December, Canadian home sales still easily hit a new annual high last year, in staggering contrast to the deepening trauma south of the border. Housing is very unlikely to provide as much support to Canadian growth in 2008, but it's also highly unlikely to follow the U.S. market's due-south lead either.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me now or in the future,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: house trends, housing prices, Real Estate Market

Read more!

Real Estate Market Update from New Home Building Permit Perspective

Building Permits: From Boom to Gloom?

We don't normally write about a drop in Canadian building permits, even one like the 9.9% setback in November. However, given the suddenly heightened sensitivity over every twitch in the economy, today's decline is worth looking at, especially given the fact that it follows hard on the heels of a 19.6% drop in December housing starts and last week's 12.8 point plunge in the Ivey PMI for the same month. Is this trio of steep sags in admittedly third-tier economic indicators an ominous warning for the Canadian economy? In two wordsprobably not. While there is plenty to be concerned about on the outlook primarily the softening U.S. economy this sudden run of weak data in very volatile series is likely noise.

Putting it in perspective, building permits in the first 11 months of 2007 were up a hefty 12.4% from year-ago levels even with the November decline. And, keep in mind that the drop in November followed a 7.3% pop in the prior month. The latest setback was concentrated in the non-residential sector, which had been particularly frothy earlier last year (up 15.5% so far in 2007). Residential permits were also off 5% m/m, but were up by a surprisingly sprightly 10.5% year-to-date. (Contrast that with the 25% y/y plunge in U.S. building permits in the same period.)

Most provinces saw declines in November, led by Alberta (-13.8%) and B.C. (-20.0%). However, the top of last year's leaderboard was still crowded with western provinces. Permits in Saskatchewan were up 33.9% last year, with Alberta (15.2%) next in line. Notably, Ontario was in third spot, thanks to a strong 26% rise in non-residential activity.

In a separate release, new home prices were a touch firmer than expected in November, rising 0.5% m/m. This held the annual trend steady at 6.1%. In a sign of just how far-flung home price pressures are in Canada, the two biggest monthly increases were posted in Halifax and Quebec City. In contrast, new prices dipped again in Calgary, where annual price increases of 5% are now below the national average.

The Bottom Line: The Canadian building industry appears to be in the first stages of losing some momentum after a blow-out year in 2007. That's still a far cry from the deepening housing descent in clear view south of the border. In fact, given widespread talk of labour shortages in the Canadian industry, some cooling in the sector in 2008 may not be such a bad thing.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Are you thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, house trends, housing prices, national prices

Read more!

2008 Predictions - How close were the 2007 Real Estate Predictions versus actual and my Real Estate Predictions for 2008

2008 Predictions for real estate, interest rates and the GTA economy.

2007 Real Estate Market Predicitons for the GTA

Blogging is supposed to be personal writings that compel you to continue reading the story. All too often my blog has contained plenty of facts and information and been short on my personal views, observations and opinions. Part of this is due to time constraints, part due to the fact that I am a logical engineer thinker and mostly because I am not much of a creative writer. So here goes my shot at wowing you with words of wisdom and predictions for 2008.

One of the interesting things I've noticed is that as I approach 50 I feel I have a right to express my opinions more freely due to my earned right of experience. I teach a course to other 'newer' agents about the internet and the importance of having a presence on the web. Certainly I've tried to maintain a high profile on the web by uploading over 1700 pages on my site to date. That does not include my 353 blog posts to date. I digress.

After 20 years in the real estate business and having gone through the dark recession years for real estate from March 1989 to 1994 you can understand if I'm a little gun shy when I look at the current market. We've now experienced about 12 years of unprecedented growth in the real estate market. If you don't believe me, check out this graph. Old school business thinking was that economics went in 7 year cycles. Clearly this is NOT the case in the GTA real estate marketplace any longer. Long live Garth Turner. He was always an inspiration to me, good or bad, he would hang his thoughts on the line at any time. I miss his articles and predictions.

We've experienced year over year increases for 12 years in a row with no end in sight. I wrote this time last year and predicted a 4-6% increase in prices for 2007 Was I ever wrong! It seems that our prices will increase over 11% this year! Last year at this time I was worried that maybe our market was stalling a little due to increasing interest rates and slowing sales. Again I was a little too conservative.

So here we sit in Canada with low inflation, low unemployment, low interest rates and a strong economy. The US is faltering due to their sub-prime lending crisis and looks like it will last another 8-18 months, at least. November 2008 is a US election and in all US election years in the past 20 years our market has slowed in the 3 to 4 months preceding a US election. Canadian dollar all time highs. So with all these upcoming uncertainties you would think that I would predict lower increases or a softening of our marketplace. Nope. I think our market will continue to hum along due to low vacancy and rates and more buyers than sellers and continuing lack of land for new development.

For 2007 I am happy to report that I was wrong. I predicted an increase in the GTA average price of about 3-4% and the actual increase was about 11% Wow, was I ever wrong on that number, and many people are quite thrilled about that!

This is what I predicted that would happen last year this time for 2007

I believe that we will see a steady and 'normal' market in 2007. We will not see the huge price increases that we saw in 2004 and 2005. Prices should increase about 3-4%, a little better than inflation for the year. As always, if you are thinking of selling, February or March may be the best months in 2007.
This is what I predicted in December of 2005 for the real estate market in 2006. I was just a little lucky!
It is interesting that many of the experts are predicting prices to rise only slightly for 2006, but nearly as not as much as they did in 2005. I would agree with this line of thinking. The last 4 months of 2005 showed signs of a more "normal" market. The market so far in 2006, up to the end of February has been normal, but nowhere near the sales volume or price increases that were experienced in early spring of 2005.
As long as rates stay about where they are we should see another year with a healthy real estate market for 2006 with modest price increases.
And sure enough, it appears that 2006 price increases will be about 5% compared to the nearly 10% we saw in 2005. The real estate boom in Toronto and the GTA is over, for the time being that is! We will have another real estate boom in Toronto, it's only a matter of time.

Read the entire post here:
http://www.mississauga4sale.com/newsletter/Toronto-GTA-Real-Estate-Market-Predictions-2007.htm

Mark's Crystal Ball for 2008

This is what I predict for 2008 in real estate, interest rates and more!

Mark's Predictions for 2008

I see that our marketplace in the GTA will see price increases just above inflation, in the range of 4-6%

I believe that mortgage interest rates will come down in the beginning of the year and stay lower compared to today's rates and not increase again until just before the US election in the fall

Rental vacancy rates will decrease, thus rental rates will increase about 7-10% or more this year. A 'typical' 10 year old 3 bedroom townhome in Erin Mills currently rents for about $1400 to $1550 per month and this will
increase by at least $100 per month by this time in 2008 This will only continue to make real estate investment properties more desirable and lucrative, it's time to buy another property if you can afford it!

The condo market will remain a strong part of our marketplace, due to affordability and lifestyle choices

I believe that the US will be just begin to see the light at the end of the tunnel by the end of 2008, their sub-prime mortgage crisis will have peaked and they will be on the road to recovery

A barrel of oil will have reached $120 per barrel sometime in 2008, mostly due to an international crisis and absurd speculation fueled by the pundits and the press

Along a similar vein to the last prediction, gasoline prices will peak at $1.20 per litre sometime in 2008 but will be $1.00 by year end.

Gold will break $900 (and it does not matter whether it's US$ or CDN$ much anymore!) sometime in 2008 but settle to $735 by end of 2008

If the experts are now stating that 82% of all buyers begin their real estate search on the internet, I believe that it will be 90% by the end of 2008

Watch out for following the emotions of the marketplace and stick to your long range goals

I believe that Mississauga will continue to be one of the top cities in Canada and the world to live in and that people will continue to choose Mississauga as one of their top choices of places to live in the GTA Read about the psychology of ownership. Real estate will always be an excellent investment especially if you get a firm hold on your finances and will continue to be the best long term investments in your future and your children's future that you can make!

Read more 2008 predictions and information at my site.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, house trends, housing prices, Mortgage Interest Rates, Real Estate Market, resources, TREB average prices toronto 2006 2007

Read more!

Canadian Resale Housing Market up 11.6% year over year - Good news for us all!

Canadian Housing: It is Legend

At least one Canadian economic train fully decoupled from the U.S. this yearthe housing market. Today's November existing home sales data from the Canadian Real Estate Association show that resale activity barely blinked in the face of the severe credit squalls in the Fall. Sales rose 3.2% from October, and were up a solid 7.6% from year-ago levels. While some of the sales strength may be attributed to a buying rush in Toronto ahead of a new land transfer tax in 2008, that city saw only the fourth strongest rise in the country, and no fewer than 10 of the 25 reporting cities posted double-digit y/y sales gains last month. Meantime, price increases just keep chugging along.

Average home prices were up 11.6% from year-ago levels in November, with 12 cities reporting double-digit increases.

All cities west of Lake Superior continued to report double-digit price increases last month, led by the 50% sprint in Saskatoon. (That was actually down a shade from the 57% spike seen earlier this year.) However, the price surge is not confined to Western Canada, as Toronto, Kitchener, Sudbury and Quebec City have also posted double-digit gains.

Meantime, the previously scorching Alberta markets continue to coolsales in both Calgary and Edmonton fell steeply from a year ago (Calgary down 18.4% y/y, Edmonton down 22.3% y/y), while new listings have posted double-digit gains. That's not a friendly combo for prices, looking ahead. Notably, only three cities reported sales declines in the first 11 months of the yearEdmonton, Calgary and Windsor. Elsewhere, however, markets still look tight, with rapid sales increases suggesting that prices could climb further in a number of cities.

The Bottom Line: Canadian home sales have hit a new annual high with one month left to go, an impressive performance in view of the traumatized U.S. market and the variety of risks facing the Canadian economy.

While there are plenty of questions surrounding the 2008 economic outlook, not many are from the domestic side of the equation. Housing may not manage to pack as strong a punch next year as it did in 2007 for the Canadian economy, but it's also highly unlikely to suffer a knockout blow either, a la the U.S. market over the past year.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: house trends, housing prices, Real Estate Market, resources

Read more!

Alberta Prices are changing - Canadian Housing Market Commentary

Housing Market Commentary

CANADIAN HOME PRICES NO LONGER AN ALBERTA STORY

According to the latest MLS / CREA existing home market data for October, year-to-date national resale home prices are up 10.5%. They will average close to $305,000 in 2007 compared to around $275,000 last year. This will mark the third consecutive year of 10% appreciation or more in the average Canadian existing home, a remarkable performance. But much of the price gains in recent years have been driven by markets west of Ontario, most notably in Alberta where gains were outsized. National housing market statistics had lost much significance over the last three years due a marked divergence in performance between "the West and the rest". In particular, along with 30%+ sustained price gains over the last two years and because of their significant and growing market size, Calgary and Edmonton were skewing the national figures.

Yet as we crunch the numbers and look forward to 2008-09, we can state with some assurance that this particular chapter in Canadian housing market history is soon coming to an end, if not already behind us. Alberta's home price growth is cooling rapidly. The pickup in national average prices since January is mostly an Eastern markets story. After bottoming out in terms of home appreciation during the tail-end of 2006, Quebec and Ontario (and the Atlantic region to a lesser extent) continue to pick up enough steam to push up the national trend despite a massive cool down out West. This is particularly notable in Ontario where an uptrend since April has contributed heavily to a bounce-back in overall Canadian prices. We expect Alberta's home prices to grow close to par with the national average in 2008 and to underperform in 2009. And while Saskatchewan is currently on fire, it will likely follow a similar path in about 12 months time. Furthermore, Saskatchewan would not on its own skew the national numbers given its smaller market size.

With much less regional dispersion around the Canadian mean, national numbers start to have meaning again. This is reflective of underlying market (demand/supply) conditions: Calgary and Edmonton have become much more balanced with more listings coming on tap and sales slowing, whereas most large urban markets in Ontario and Quebec have seen the reverse, with their markets tightening.

Under a reasonable scenario of a continued cool down in Alberta (and in British Columbia to a lesser extent) and that Ontario and Quebec hold in around 7-9% or higher for a few months, then resale price growth performances should converge sometime in the second quarter of 2008.

Read more about Price Trends

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: house trends, housing prices

Read more!

RBC report that Canadian Economy continues on a solid growth path

RBC Report that our Canadian Economy stays on a solid growth path

Canada's economy grew at a 0.2% pace in August and has expanded at a 2% annualized pace in the July-August period compared to the 3.4% average of the second quarter, setting up for a more moderate third-quarter following six months of very robust expansion. However, the downside risks to the growth outlook have been mounting as the U.S. housing market correction continues in full swing and the Canadian dollar treks to higher levels.

Canadian payrolls rose 63,000 in October. The unemployment rate ticked down to 5.8%. Average hourly earnings for permanent workers accelerated to 4.2% yearover- year from 4.1% in September, marking the fastest pace since May 2001.

After two back-to-back declines, retail sales picked up pace in August, rising by 0.7%. Retail sales slowed in the first two months of the third quarter but remained in positive territory in real terms, supported by the strong labour market and a pickup in wage growth.

Housing starts slipped back in October to a 219,500 annualized pace from the exceptionally high 281,300 pace in September, the highest level since 1978. Our forecast assumes that starts will generally trend lower, eventually averaging a little above 200,000 in 2008.

The merchandise trade surplus narrowed to $2.65 billion in September, the smallest surplus since December 1998. Exports fell by 2.3%, while imports rebounded by 2.2%. The strong rally in the Canadian dollar into November and robust domestic demand set up for import growth to remain firm, while the slowing in U.S. demand is likely to keep export growth limited, meaning that the trade sector will restrain the pace of GDP growth in the months ahead.

The 12.7% surge in gasoline prices and the huge 17.5% drop in gasoline prices last September pushed the year-over-year all-items inflation rate to 2.5%, the highest level since May 2006 and solidly above the Bank of Canada's 2% inflation target. Courtesy of RBC Economics

read more about Current Mortgage Interest Rates,

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: house trends, housing prices, resources

Read more!

TREB Toronto Real Estate Board reports that November was BestEver, Best Year Ever!

TREB Reports that this was the Best November Ever, Best Year Ever!

December 5, 2007 -- A record-breaking November saw 7,313 sales, driving year-to-date totals to 88,695 sales, TREB President Maureen O'Neill announced today. "We have already exceeded the 84,145 sales recorded during 2005, which was our previous record," said the President. "By the end of December we will have crossed the 90,000 sales mark for the very first time. As 2007 winds down, the GTA resale home market is looking as healthy as it has ever been."

Prices were almost unchanged in November, with the average at $393,747, down marginally from the $394,646 recorded in the previous month. It was up 11 per cent over the $355,727 recorded during November 2006. Meanwhile, days-on-market came in at 32, and the list-to-sale price ratio was 98 per cent.

Breaking down the total, 2,725 sales were reported in TREB's 28 West districts and averaged $362,272; 1,529 sales were reported in the 14 Central districts and averaged $519,841; 1,354 sales were reported in the 23 North districts and averaged $417,967; and 1,705 sales were reported in TREB's 21 East districts and averaged $311,738.

Read more about sales and stats and see a price graph

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: house trends, housing prices, Real Estate Market, Toronto Market Watch, TREB real estate

Read more!

It was the highest October on record for MLS® home sales

Highest October on record for MLS® home sales

OTTAWA November 15th, 2007 MLS® resale housing activity in Canada's major markets had their strongest showing in October compared to any other year on record and are on track for a new annual record, according to statistics released by The Canadian Real Estate Association (CREA).

Seasonally adjusted national MLS® sales activity rebounded to 28,966 units in October 2007, up 1.3 per cent from levels recorded in September. The rebound follows three consecutive monthly declines since sales peaked in June, and reflects a rise in activity in Toronto, Edmonton, Hamilton-Burlington, Victoria, Montreal, Quebec City and Winnipeg. Higher activity in these markets more than offset sales declines in Calgary, Vancouver, Saskatoon and Sudbury.

Actual (unadjusted) MLS® sales activity was up 7.6 per cent in October compared to the same month last year. Transactions posted year-over-year gains in every month except September this year, putting activity on track for a new annual record. MLS® home sales activity for the year-to-date in October totaled 319,411 units, an increase of 8.6 per cent compared to levels for the first ten months last year. Year-to-date transactions continue running ahead of year-ago levels in nearly all major markets.

Seasonally adjusted n ew MLS® residential listings edged down 0.2 per cent month-over-month in October 2007 to 49,497 units. This is the fifth highest monthly level on record. New listings receded from their peak in Calgary, and eased to their fourth highest level in Edmonton. The decline in new listings in these markets more than offset a rise in new listings in Toronto and Montreal.

"The trend in new listings shows there is no panic selling in Canada's housing market," said CREA President Ann Bosley. "It is important Canadians understand the differences between the Canadian and U.S. housing markets, and their local REALTOR® can provide that information."

CREA's MLS® revised market forecast for 2008 indicates a gradual slowdown in the re-sale housing market nationally, but MLS® sales volume will remain at near record levels. "The MLS® residential average price is forecast to set new records in all provinces next year, but those increases will become smaller as the resale housing market becomes more balanced in 2008," Bosley added.

The monthly rise in sales activity in October 2007 caused the resale housing market to tighten a little compared to the previous month. Winnipeg, Regina and Hamilton-Burlington were the tightest of Canada's major markets in October, while Edmonton, Calgary and Windsor were most balanced.

The major market MLS® residential average price rose 10.6 per cent year-over-year to $333,544 in October the sixth consecutive month that the increase exceeded ten per cent. Average price reached the highest level on record in Regina, Saskatoon, Toronto and Montreal.

"More than half of major markets posted a monthly increase in activity," said CREA Chief Economist Gregory Klump. "By the end of next month MLS® sales activity is likely to exceed the annual sales last year."

"Negotiations still favor the seller in nearly all major markets," said Klump. "This suggests resale housing demand remains on a strong footing, and that price increases will continue to exceed overall consumer price inflation."

MLS® Major Market Residential Summary:

				(Unadjusted Data)
		September 2007	% change	October 2007	October 2006	e
Dollar Volume ($ millions)	9,632.5	9,408.6	2.4	9,475.3	7,963.1	19.0
Unit Sales	28,966	28,587	1.3	28,408	26,407	7.6
Average Price ($)				333,544	301,552	10.6
New Listings	49,497	49,580	-0.2	50,880	47,773	6.5

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada's real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 92,000 REALTORS® working though more than 100 real estate Boards and Associations. CREA's primary mission is to represent members at the federal level, and to defend the public's right to own and enjoy property.

This report is published by the Communications Department of The Canadian Real Estate Association (CREA). Further information can be found at http://www.crea.ca/.

Read more!

Average house prices anticipated to rise by 9.5 per cent nationally

Average house prices anticipated to rise by 9.5 per cent nationally

(NC)-A booming start to 2007 and solid price appreciations in all areas of the country have paved the way for a promising outlook for the Canadian housing market. The strong economy has fuelled consumer confidence, driving demand across the country.

"The momentum from the year's extraordinary start spilled into the second quarter, compounding typically busy spring market activity and stimulating solid price appreciations in almost all regions of the country. These conditions will certainly be an impetus characterizing Canada's real estate market through to year's end," said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services.

These healthy and robust conditions are anticipated to prevail throughout the year as all Canadian regions are expected to experience a rise in average house prices with double-digit gains forecasted for Edmonton, Calgary, Winnipeg and Regina in 2007. In addition, modest mid-single digit increases are expected for Central and Atlantic Canada.

The national average house price is forecast to rise by 9.5 per cent this year, passing the $300,000 mark for the first time, to $303,300. Home sale transactions are also projected to rise by eight per cent to 522,306 unit sales by the end of 2007.

What's happening in your market? http://www.mississauga4sale.com/TREBprice.htm

City Anticipated Price Change in 2007

Halifax 4.6% +

Montreal 6.0% +

Ottawa 6.2% +

Toronto 5.0% +

Winnipeg 11.9% +

Regina 13.8% +

Calgary 35.0% +

Edmonton 39.5% +

Vancouver 12.0% +

Read about Price Trends in our marketplace

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: buying strategy, housing prices, national prices, Real Estate Market

Read more!

RE/MAX reports that Condominiums have achieved unprecedented favour among Canadian home-buyers

Condominiums achieve unprecedented favour among Canadian homebuyers, says RE/MAX

Double-digit sales gains reported in most major markets in 2007

MISSISSAUGA, ON, Nov. 14 /CNW/ - After more than three decades of slow but steady growth, the condominium concept has finally clicked with Canadian homeowners. The lifestyle has proven to be a solid investment in housing markets across the country, chalking up some of the most impressive gains in residential real estate in 2007, according to the RE/MAX Condominium Report released today. Their universal appeal is substantiated, with every market reporting increased momentum in condominium sales volume over 2006 levels. In fact, 80 per cent of markets surveyed reported double-digit gains in sales year-over- year, with 53 per cent reporting increases over 20 per cent. The greatest growth was experienced in Canada's small to mid-sized markets. Leading the country, in terms of percentage increase in sales so far this year, are Kitchener-Waterloo (+59%), Regina (+57%), St. John's (+54%), and Saskatoon (+33%).

Deteriorating affordability levels in major Canadian centres have led to the resurrection of the condominium lifestyle in recent years," says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. "Condominiums are clearly the answer to the skyrocketing cost of land and shelter that has all but eradicated the dream of homeownership for many first-time buyers."

While price appreciation on freehold properties, in particular, was the primary factor in the upswing, the strong desire among baby boomers to lead an active, carefree lifestyle has also driven the concept to unprecedented popularity. The RE/MAX Condominium Report identified Greater Vancouver as the strongest market in the country - where close to 60 per cent of all residential sales now involve a condominium. Condominium presence is also on the rise in centres such as Toronto, Edmonton, Calgary, Regina, Ottawa, and Hamilton-Burlington, where condos now represent 20 to 30 per cent of all MLS sales.

"The white picket fence, sprawling green lawn and tidy urban bungalow has become an unattainable ideal for many first-time buyers - especially in the West," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "By necessity, condominiums have become the only practical means to homeownership for a growing segment of the population. Today's entry-level purchasers aspire to manageable mortgage payments, sunset city views, and the non-stop action and amenities of central core living, all packed into 600 to 800 sq. ft. The momentum of the market in recent decades has redefined the home buying process."

Condominium values were also up from coast-to-coast in 2007, with all major markets reporting an increase in average price. Thirty-three per cent of cities surveyed reported double-digit price appreciation. The most dramatic hikes were seen in Western Canada's red-hot housing markets, led by Saskatoon (+24%), Calgary (+22%), Edmonton (+19%), Kelowna (+16% for town homes, +12% for apartments), Vancouver (+14% for town homes, +11% for apartments), and Victoria (+9% for town homes, +12% for apartments).

At the top end of the market, condominium ownership has been equated with lifestyle. Throughout 2007, aging baby boomers fuelled demand for luxury condominium units. Upper-end activity was reported to be on the rise in all markets examined, with the greatest appreciation occurring in Edmonton (+154%), Greater Toronto (+98%), Victoria (+85%), Winnipeg (+58%), Vancouver (+49%) and Kitchener-Waterloo (+39%). The maintenance-free factor, the ability to travel and to enjoy the best the city has to offer - from restaurants to recreation - were cited in overall condominium appeal.

"In years past, there seemed to be a ceiling in terms of what buyers were willing to pay for this type of product," says Polzler. "Widespread acceptance has seen that philosophy tossed out the window. In the upper-end especially, buyers have demonstrated a willingness to set new benchmarks, and in some cases, are spending more than what a detached home might cost. Multiple offers, once unheard of, have become a reality in some centres."

New benchmarks for the most expensive apartment-style condominium units ever sold through MLS have been reported in several cities in 2007, including Vancouver ($18 million), Calgary ($3.7 million), Edmonton ($2.3 million), Winnipeg ($1.25 million), and Kitchener-Waterloo ($670,000). Given solid demand through all price ranges, it comes as no surprise that
investors have been very active in the majority of markets surveyed, hoping to snap up a piece of the pie while demand remains at peak levels. Yet, with a growing number looking for a quick return on investment, swelling inventory levels have become a serious concern in several markets, most notably in Calgary and Edmonton, and to a much lesser extent, Kelowna.

"The impact of speculation, especially in Canada's largest condominium markets, has yet to be determined, but concerns for the future are relevant," says Ash. "In downtown Vancouver, an estimated 50 per cent of sales activity is attributed to investors, whereas as much as 60-85 per cent of new condominiums sales in Toronto's downtown core reportedly involved investors in 2007. This is a major factor that could influence prices in years to come."

For now, a number of market fundamentals point to increased growth in sales, prices and demand well into 2008. These include vibrant economies, Canada's aging population, rising prices, and higher levels of immigration, to name a few.

Read more!

Housing Affordability - Rising price-to-rent ratios partly justified

A look beyond our standard affordability measure
Our latest housing affordability calculations showed that the proportion of before-tax household income going towards home ownership costs suffered one of its largest and most broadly based quarterly deteriorations in the current housing cycle stretching back to the mid-1990s. While the deterioration spanned every major city, it was the western markets that warranted caution because of the speed and depth of the deterioration.

Our affordability measure provides a rough depiction of trends in wages, the cost of capital, energy prices and tax rates, but it has limitations. It does not directly address whether or not house prices are high today by historical standards and how they compare to local rental options and it does not account for recent financial innovation, such as the introduction of products like extended amortization mortgages.

Another measure that provides an indication of an over- or undervalued market is the price-to-rent ratio that compares house prices to rental costs using the rent component in the consumer price index. The purpose is to compare the cost of buying compared to renting a house. While insufficient on their own to predict market valuations, together the affordability measure and price-to-rent ratios can help assess whether housing markets are inflated.

Rising price-to-rent ratios partly justified
The unanimous trend of rising price-to-rent ratios across every major city in the current housing cycle can be partly attributed to recent financial market developments and innovation. The precise combination of historically low interest rates coupled with significant financial innovation has been a key support in the current housing cycle. Interest rates were on a downward trend through much of the 1990s and have held at very low, attractive rates since the start of the decade, thus helping to fuel housing demand. Financial innovation has also helped to make the market more liquid through extended mortgage amortizations, higher accepted loan-to-value ratios and securitization. In fact, longer amortization products now dominate new mortgages in the insured market and comprise about 25% of total new mortgages in Canada.

Regional disparities behind soaring price-to-rent ratios
National price-to-rent ratios were remarkably stable through the 1990s, indicating a relative indifference between buying compared to renting a home. The result in the 1990s was a significant improvement in affordability right across the country. The tide turned at the start of the current decade and price-to-rent ratios have since increased by roughly 80% nationally. A rising ratio is indicative of house prices outpacing rental costs. These trends are not a consistent cross-provincial phenomenon. Part of the increase in the ratios is attributable to what has become an overheated market out west. However, part is also due to changing dynamics in the market that have made housing more affordable and accessible to lower-income segments.

The bottom line
While financial market trends help explain some of the increase in price-to-rent ratios in central and eastern Canada, they do not fully explain the increases out west. By considering affordability conditions in conjunction with price-to-rent valuation estimates, a fuller picture of the sustainability of current fundamentals emerges. Together, these measures point to evidence of overvalued markets in the west, while markets from Manitoba eastward appear, on balance, to be fairly valued From RBC Economics

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: buying strategy, house trends, housing prices, Real Estate Market, Real Estate Strategies, resources

Read more!

TREB Home sales up 15 percent, price up 11 per cent year over year

October Sets New Record for TREB Real Estate

November 5, 2007 -- TREB Members recorded 7,915 transactions of single-family homes in October, an all time record for the month, TREB President Maureen O'Neill announced today.

"Sales were up 15 per cent over the 6,876 figure recorded in October of 2006, and up about 10 per cent over the 7,227 transactions that took place in October 2003, which was our previous record."

"There is every indication that 2007 will be a banner year for resale housing activity in the Greater Toronto Area," said Ms. O'Neill. "The effects of the City of Toronto's new land transfer tax will definitely be felt in 2008 but we are also confident that consumers will continue to see the value of real estate as a solid long-term investment."

Prices rose in October, with the average climbing four per cent to $394,646 over September's $380,132, and up 11 per cent over the $356,423 recorded in October of 2006.

Breaking down the total, 2,964 sales were reported in TREB's 28 West districts and averaged $367,139; 1,602 sales were reported in the 14 Central districts and averaged $522,800; 1,555 sales were reported in the 23 North districts and averaged $415,071; and 1,794 sales were reported in TREB's 21 East districts and averaged $307,950.

See the graph showing the latest Price Trends This page will show you the latest prices, graphs, interest rates and more

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX

Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: house trends, housing prices, Real Estate Market, Toronto Market Watch

Read more!

Vancouver has the most expensive housing market in Canada

Vancouver has the most expensive housing market in Canada

VANCOUVER: On a recent Wednesday evening at the Gotham Steakhouse in the city center here, about 100 people gathered around an open bar for a party given by Ian Watt, a Century 21 broker, who had invited clients to thank them for buying property in the city.

One of the guests was Annu Gill. With her fiancé, Rick Gill, who coincidentally has the same last name, she had bought a 1,200-square-foot, or 110-square-meter, condominium at the Sheraton Wall Center, a 42-story hotel with 74 units in the center of Vancouver. The condo cost 1 million Canadian dollars, or $1 million.

"When I try to explain to friends in the States how much it costs here, they don't believe me," Annu Gill, 29, who is a real estate broker, said of the city's high prices. "They say, 'You're lying.' "

But 830 dollars a square foot - which is how much the couple paid for the condo - is not unusual these days.

The center of Vancouver is the most expensive housing market in Canada, according to a survey of 21 cities worldwide released last April by Century 21. The average sales price for a condo in Vancouver has been about 408,500 dollars this year, up 14.6 percent from last year, according to Royal Le Page Real Estate Services. The average sales price in Toronto, Canada's largest city, was about 235,300 dollars, up 15.7 percent from last year, and in Montreal, 196,400 dollars, up 4.6 percent.

Europe slow to turn to shared ownership

Vancouver has the most expensive housing market in Canada

Tide of investment sweeps Bahamas

The number of homes in Vancouver selling for almost 2 million dollars also rose this year, by 48 percent, according to Re/Max Associates. The higher prices reflect years of price gains of 15 to 20 percent, according to Helmut Pastrick, the chief economist for the Credit Union Central of British Columbia.

Fueling the high-end market are foreign and second-home buyers, he said, though not necessarily from the United States. The weak American dollar, which for the first time in decades is worth less than the Canadian dollar, has been making real estate in Canada more expensive for Americans.

Other foreign buyers make up a significant percentage of the market, according to Ian Gillespie, the president of Westbank Projects. The company is building several residential towers in the center, including the 60-story Living Shangri-La, which will be Vancouver's tallest building when it is completed in 2009.

"This is a very multicultural city," said Gillespie, who cited as an example a pharmaceutical executive from the Middle East, who recently bought a 1,700-square-foot, 3.55 million-dollar condo at the Fairmont Pacific Rim.

The city's population has grown substantially as a result. In 2006, there were 36,321 more people living in Vancouver than in 2005, according to Statistics Canada, and 72 percent of the newcomers were immigrants.

It is not hard to understand why the city is so appealing: Vancouver has been described as Canada's version of San Francisco. It has a cosmopolitan feel, yet it is surrounded by mountains and water. The temperate climate attracts retirees, while the vibrant urban lifestyle draws young singles. The economy, supported by forest products, mining and an active film industry, is also growing, thanks in part to the development associated with the city's serving as host to the 2010 winter Olympic Games.

The most expensive condo on the market in the center of Vancouver right now is a 7,000-square-foot waterfront penthouse listed for 17.7 million dollars. The 38-year-old owner, an entrepreneur, said he bought the condo for about 2.9 million dollars four years ago, then sank millions more into renovations.

Jamie MacDougall, an agent with Sotheby's International Realty, said that the condo was still considered cheap, compared with comparable properties in New York or San Francisco. It has been on the market since July.

Although price increases have slowed this year, Vancouver's housing market is not experiencing a bubble, Pastrick said. Less aggressive mortgage underwriting practices have helped shield Canada from the credit squeeze that swept through the subprime mortgage market in the United States.

Bob Rennie, the president of Rennie Marketing Systems, a real estate marketing company, said Canadians typically put down 20 percent in nonrefundable deposits.

Every crane in the center is sitting over a building that is 75 to 100 percent sold out, with large deposits in place, Rennie said. "So the consumer is committed, and the developer is not at risk with construction," he noted. There are about 50 condo towers under construction in the center area.

In 2006, Diana Becker, the owner of a culinary tourism company, paid 875,000 dollars for a two-bedroom in the 37-story Jameson House, which is scheduled to open in 2009. Becker, who now lives on the outskirts of the center, said she had been attracted to the development's design. "It feels very Spanish Moroccan," she said. Becker says she is also looking forward to being able to walk to her favorite restaurants like Le Crocodile.
Not everybody is enthusiastic about Vancouver's growth. To make room for some projects, hundreds of single-room-occupancy hotel rooms for low-income residents have been lost, said David Eby, a lawyer with the Pivot Legal Society, a legal advocacy group. High prices are pushing out middle-income renters and buyers, he added.

Gordon Price, the director of the City Program at Simon Fraser University, said the city had erred in abandoning its commitment to maintaining a 33 percent low-income housing mix in the Southeast False Creek site. The development is being built initially to house athletes during the Olympics. Later, it is to be converted into condominiums and town houses selling for 584,000 dollars to 5.8 million dollars.

The city reverted to a 20 percent low-income housing mix because of concerns about cost, said Jennifer Young, a city spokeswoman, explaining that there had been a drop in government financing for low-income housing.

Darek Cole, for one, said he felt lucky to afford a home in the city. "Vancouver is a difficult place to get into, compared to other cities," said Cole, 26, who works for a marketing company. He paid almost 263,000 dollars for a 600-square-foot condo in the city's Downtown Eastside neighborhood.

"I knew it would be a good investment," he said. By Linda Baker Published: October 25, 2007

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: house trends, housing prices, Real Estate Market, resources

Read more!

Positive CMHC Housing Market Outlook for 2007/2008

CMHC released their Housing Market Outlook for Q3 2007. The housing market forecast for the balance of 2007 and 2008 remains positive.

This article will highlight some of their findings (a "Coles Notes" version!):

Ontario - Overview

New home construction activity will moderate but remain near historical averages in 2007 & 2008;
Growth in Ontario's economy will range between 2 & 2.5% annually this year & next;
Ontario's economic growth will lag behind the Canadian average, but the growth gap between Ontario & the west will gradually narrow.

Ontario - Resale & Prices

Existing home sales through MLS will set a new record this year. Slightly higher carrying costs in 2008 will pull sales only modestly lower.
A more balanced resale market, resulting from higher listings, points to slower growth in house prices;
Average MLS price in Ontario will rise by 5.3% this year & 3.4% in 2008.

Mortgage Rates

Moderate inflation and a strong Canadian dollar vis-à-vis the U.S. dollar, will help keep Canadian bond yields and mortgage rates flat over remainder of this year.
Posted mortgage rates for 5 year terms are forecasted to be in the 6.5% - 7.5% ranges (for remainder of this year & 2008).

Ontario - Multiple Starts

Healthy pool of first time buyers looking for less expensive homes combined with provincial gov't efforts to promote higher density construction, suggest condo apartments will remain in demand;
Multiple starts will remain relatively stable - increasing slightly from 2007 to 2008.

Ontario - Single Starts

Demand for higher priced detached homes will cool despite a rapidly growing population of 'mid 40s' which prefer low density homes;
Single starts will cool from 2007 - 2008.

The Canadian Economy

The Canadian economy grew at a faster pace than expected in first quarter of 2007;
Consumer spending made a significant contribution to economic growth;
Key challenge for the Cdn economy has been the deterioration in net exports due to high value of CDN $ & the slow growth rate in US economy;
Consumer spending should stay vibrant thanks to high employment, income gains & relatively low interest rates.

The full report is available at http://www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2007_Q03.pdf

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, house trends, housing prices, Interest Rates, Mortgage Interest Rates, Real Estate Market, Real Estate Strategies, resources

Read more!

Celebrating 20 Years in Real Estate!

Celebrating 20 Years in Real Estate!

I obtained my real estate license on Oct 26, 1987 and thus, today marks my 20th year in the real estate business. Much has changed in the business in 20 years. The Lord's Day Act prohibited selling real estate on a Sunday back in 1987. We did not begin using a fax machine until spring of 1988, and those fax papers would fade away after a month or two.

For the past 20 years, I carry two press releases inside my presentation folder. The one article is from the Toronto Star. It 'shouts' that the average price is predicted to rise over $200,000 in the next year. The average GTA price in October 1987 was $192,500 (today it's $380,132).

Even though I had bought my first townhouse in 1985 I needed some credibility to help me convice others that real estate was a good investment. Being new in the real estate business, I would pull out the Toronto Star article when I would meet people to prove that real estate was a good investment. I highlighted some of the paragraphs in the article and the key paragraph stated, "Real estate has always been a good investment and it has always produced excellent equity appreciation". I've not pulled out this article for about 10 years, but the same certainly holds true today as it did back then.

The other article I carry around is written by the then business editor of the Toronto Star, none other than Garth Turner. His views carried much weight back then and when he spoke about real estate, people listened. The article I carry that is written by him talks about the "horrifying experience" if you are looking for a place to live in the GTA. Prices are nearly averaging $200,000 and only one apartment in a thousand is vacant! We (Toronto) have the highest housing prices in the entire country. Mortgage rates were about 11.5% at the time and inflation was about the same! Wow have times changed, except that he also states, "We have also had the most spectacular gains in the price of real estate. There are, however, more increases to come, because as pricey as it is, housing is still essentially undervalued". Where have you heard this before? People in the GTA have been saying this same thing for the past 20 years that I've been in the business and will continue to say this for at least the next decade.

I believe that real estate will continue to be an excellent method of 'forced savings', it also gives you a firm footing to raise your family and will contintue to be an excellent long term investment anywhere in the GTA, North to Barrie, East to Newcastle, West to London and around the Golden Horseshoe to Niagara Falls.

The last 20 years in real estate has been great for me and my family. I am looking forward to more exciting times in real estate over the next 20 years and hope you can enjoy the ride along with me!

I want to thank all of my clients and friends that have supported me and used my services over the past 20 years and especially those people who 'believed in me' back in those early years.

I hope that this finds you and your family healthy and happy and I wish All the Best

Mark

Read about how to become mortgage free faster!

Read Mark's profile

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, house trends, housing prices, Real Estate Market, Real Estate Strategies, resources

Read more!

The Boomers are coming - watch as affordability crunch fuel highrise sales

Boomers, affordability crunch fuel highrise sales

Industry insiders never thought they would see the day when sales of highrise condo suites outstripped low-rise new home sales; but that day may be just around the corner.

According to RealNet Canada Inc., 49 per cent of total new home sales in the GTA through the first eight months of this year were highrise condo suites.

If the sales trends hold for the remainder of the year, with highrise sales running 25 per cent ahead of last year, compared to 5 per cent growth in low-rise sales, this will be the first but probably not the last time that builders will sell (and ultimately produce) more high- than low-rise homes.

It has been fascinating to watch the growth in highrise market share from 25 per cent of the market in the early 2000s, to one-third of the market by 2004, to more than 40 per cent in 2005. Last year, highrise sales spiked to 45 per cent of total sales and this year they appear to be heading north of 50 per cent.

What's happening, and can it continue?

I don't believe this dramatic market shift signals an equivalent shift in consumer preference. I maintain that consumer preference is gradually shifting as more and more retiring baby boomers enter the condo market. But the shift has been exaggerated as the affordability crunch drives more and more first-time buyers into condos, just to get a toehold in the market.

My view is confirmed by a recent report prepared by the Conference Board of Canada for Genworth Financial.

The report looked at condo markets in Canada's eight largest urban areas and asserts that rising prices for single-detached homes has bolstered demand for apartment condominiums, which are a relatively affordable ownership alternative.

"In most markets, condominium starts have risen in tandem with increases in average overall prices," the report states.

As for the longer term, the report states that "an aging population, particularly a growing number and population share of those 55 and over in all major urban areas, provides a solid demographic underpinning that is critical to the market's longer term health."

That's the gradual shift I mention above.

The Genworth view is corroborated by Jane Renwick, editor of Urbanation, which has been analyzing the GTA condo market for more than 25 years. Speaking to a recent meeting of our association's highrise forum, Renwick stressed that affordability attracts first-time buyers to the new condo market but that diverse buyer groups such as upsizing second-time buyers and downsizing baby boomers are beginning to add to the mix.

With respect to the boomers, Renwick notes that the "first wave" of them turned 60 in 2006 and that "there's more downsizing to come" for the next 17 years as the rest of the boomers reach their 60th birthday.

As an aside, Renwick revealed the key market trends in the highrise market, including a shift to tall buildings, master-planned communities, mixed-use communities and green condos incorporating features such as all-off switches, dual-flush toilets and water-saving faucets, EnergyStar appliances, motion-activated common area lighting, green roofs, car-share programs all good stuff.

Getting back to the market trends, it's clear that the highrise lifestyle is becoming an active and positive lifestyle choice for the boomers, while first-time homebuyers are more or less backing into that market due to the high cost of low-rise homes.

As those first-time buyers begin to start families, I hope the market and our industry will be able to provide more affordable low-rise or mid-rise homes to serve them.

In the meantime, it's make way for the boomers! From Bob Finnigan Toronto Star

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: first time buyers, house trends, housing prices, resources, Toronto Market Watch

Read more!

CMHC's new snapshot of Canadian housing

CMHC's new snapshot of Canadian housing

Canada Mortgage and Housing Corp. (CMHC) recently released its annual state of the nation report on housing. The 2007 Canadian Housing Observer says building greener homes in higher-density neighbourhoods near public transit, rather than in sprawling suburbs, is key to reducing the housing sector's impact on the environment and lowering greenhouse gas emissions.

The 2007 Canadian Housing Observer analyzes the relationship between environment-friendly housing construction, neighbourhood design and transportation. It found that downtown living, which provides easy access to workplaces, schools, and shops, as well as housing located close to public transit, lead to reduced automobile use. Also, better design of the suburbs results in less short-distance driving and lower greenhouse gas emissions.

The 2007 Canadian Housing Observer also examines recent trends in affordable housing, housing finance and market developments. A key conclusion about the living conditions of Canadians, which is based on new CMHC information, found that the level of Canadians living in core housing need has declined slightly from 13.9 per cent in 2002 to 13.6 per cent in 2004. Core housing need is defined as "Households which occupy housing that falls below dwelling adequacy, suitability or affordability standards, and which spends 30 per cent or more of their before-tax income for the median rent of alternative local market housing that meets all three standards."

Other key findings of this year's Canadian Housing Observer include:
- Housing-related spending grew by 6.1 per cent in 2006, contributing more than $275 billion to the Canadian economy;
- Total mortgage credit outstanding in 2006 reached an annual average of $694 billion, up 10.7 per cent from 2005. This is mainly due to increased property values, which in turn increased the average mortgage amount approved;
- All of the fastest-growing metropolitan areas in recent years were in Alberta, Ontario and British Columbia, with the exceptions of Moncton, N.B. and Sherbrooke, Québec.
- Canada's population grew at a slightly faster pace in recent years than in the late 1990s mainly due to increased immigration. Senior, immigrant and Aboriginal groups are growing more rapidly than the general population. From 2001 to 2006, the vast majority (86 per cent) of population growth took place in metropolitan areas.
- The number of households in Canada owning second homes, vacation homes, or cottages reached 1.1 million in 2005, about 200,000 more than in 1999. From 1990 to 2004, high-income earners enjoyed much stronger income growth than those with low incomes. From 1999 to 2005, the average net worth of households in Canada, after adjusting for inflation, grew at an annual rate of more than four per cent. Increased equity in real estate played a major role in this increase.
- In 2006, the proportion of gross domestic product spent on housing increased to 19.1 per cent compared to 18.9 per cent the previous year.
- Total spending on housing renovations, repair and maintenance reached $43.9 billion in 2006, an increase of nine per
cent compared to 2005.
- From a record low of 5.99 per cent in 2005, mortgage rates rose to an average posted rate of 6.66 per cent for a five-year term mortgage in 2006. They were still low by historical standards. CMHC's 2006 Mortgage Consumer Survey found that the majority of mortgage consumers (84 per cent) were satisfied with the services they received when negotiating their current mortgage. About 70 per cent of mortgage consumers prefer to use one of the major lending institutions to obtain a mortgage.
- Urban households in British Columbia and Ontario continued to experience a high level of core housing need between 2002 and 2004. One-person households accounted for almost half (46.7 per cent) of Canadian urban households in core housing need, up from 43.7 per cent in 2002. The incidence of core housing need among senior-led urban households declined from 15.4 per cent in 2002 to 13.9 per cent in 2004. The percentage of immigrant urban tenant households in core housing need increased to 36.3 per cent in 2004 from 34.4 per cent in 2002.
- The 20 per cent of households having the lowest incomes accounted for about 81 per cent of all urban households in core housing need in 2004, up from about 78 per cent in 2002. Courtesy of R.Paul Chadwick TD/CT

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, cmhc, Foreclosure, house trends, housing prices, Interest Rates, Mortgage Interest Rates, resources

Read more!

Housing Market Trends and information for buyers and sellers

This particular page will give you information about Toronto Housing Market Trends

Many reports still show Canada as a Hot Destination for Immigrants Canada's population grew last year. The increase was due to continued immigration who choose this country as home home.

Almost all regions of the country saw growth.

Canadian Mortgage Debt: Canada Homebuyers Continue get into more debt

Read more!

Slow and steady growth forecast for residential real estate in major Canadian markets in 2008, says RE/MAX

Slow and steady growth forecast for residential real estate in major Canadian markets in 2008, says RE/MAX

Mississauga, ON (October 17, 2007) - After posting extraordinary gains in 2007, housing market performance will moderate in most major Canadian centres in 2008, according to a report released today by RE/MAX.

The RE/MAX Housing Market Outlook 2008 examined residential real estate trends in 18 markets across the country. The report found that while economic prospects will continue to improve next year, few major markets are expected to exceed record sales levels set in 2007. Winnipeg, Hamilton-Burlington, Kitchener-Waterloo, London-St. Thomas, Ottawa, Sudbury, Saint John, Halifax-Dartmouth, and St. John's are all predicted to buck the trend in 2008, with appreciation ranging from one to seven per cent. Average price is forecast to increase in 78 per cent of markets surveyed next year, with the lowest price increase expected in Edmonton and the highest in St. John's.

"Western markets were first out of the gate in 2007, but those in the East followed suit," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "By year- end, some of the most impressive gains in home sales will be realized in Ontario and Atlantic Canada. Solid economic fundamentals, including billions of dollars in capital projects, a positive unemployment outlook, and solid consumer confidence levels will propel markets forward. A slow and steady growth trajectory, minus the peaks and valleys experienced in 2007, is forecast for next year."

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying, house trends, housing prices, Real Estate Market, Real Estate Strategies

Read more!

TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

TORONTO, OCTOBER 9,2007  Canada Mortgage and Housing Corporation

(CMHC) has released preliminary housing starts data for September 2007. The seasonally-adjusted annual rate (SAAR) of starts increased strongly to 41,800 in September from 32,300 in August. A robust annual rate of multiplefamily starts, especially for condominium apartments, drove this increase.

While condominium apartment starts were much stronger last month compared to September 2006, it should be noted that on an unadjusted basis through the first three quarters of the year starts of this housing type declined by 38 per cent compared to the first nine months of last year. The decline in new condominium apartment construction caused the total number of starts to dip by 12 per cent this year. Single-detached, semidetached and row (town) house starts were up 5.5 per cent compared to last year.

"Demand for new ownership housing has been very strong over the past year, due to seller's market conditions in the resale market driven by favourable local economic conditions and low borrowing costs," according to Jason Mercer, Senior Market Analyst at CMHC. "Demand for condominium apartments in the Toronto area has been especially strong. Record pre-construction condominium apartment sales experienced over the past two years have started to convert into increased starts. This trend is expected to continue in the last quarter of this year and through 2008."

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, house trends, housing prices, Real Estate Market, Real Estate Strategies, resources

Read more!

TD Canada Trust predictions for remainder of year

TD Canada Trust predictions for remainder of year

HIGHLIGHTS

Canadian economy records steady growth

Cross-currents will continue to blow across Canada's major industries

Inflation monster continues to lurk in the background

This morning's release of Canadian gross domestic product (GDP) for July while falling in on the soft side of market expectations revealed that the economy continued to churn out steady gains early in the third quarter. The 0.2% month-to-month increase recorded in the month leaves the economy on track to record a respectable rate of growth of 2.5-3% in the third quarter, which is only modestly slower than the 3.5% average outturn clocked in the first half of the year. As has been the case in recent months, the service sector remained the tower of strength, forging ahead by 0.3% on a month-to-month basis in July and counter-balancing another soft performance on the goods side (-0.1%). Since monthly data are notoriously volatile, we've provided a snapshot of year-over-year changes across the sub-industries As can be seen, the service areas have reigned supreme, while Canada's export-oriented manufacturing sector has struggled.

The headwinds will increase

While the weaker-than-expected GDP result pushed down Canadian bond yields and took some steam out of the overnight rally in the Canadian dollar which had pushed the loonie to 1.007 U.S. cents investors are more concerned with what may lie ahead. For one, neither the GDP data for July nor August's stronger-than-expected Canadian employment report factor in the fallout from the recent financial turmoil that spread across the globe. Certainly, credit conditions have improved since the height of the mid-August turmoil, with interest-rate spreads on riskier assets easing from their highs. Still, international credit markets have not returned back to normal, as evidenced yesterday when both the Bank of Canada and the ECB moved once again to inject liquidity into their respective overnight market in order to ease the upward pressure on lending rates. In Canada, participants of the Montreal proposal that aims to resolve the third-party asset backed commercial paper (ABCP) crisis announced this week that they will need more time to find a solution to the issue.

Perhaps more importantly, the prospects of the U.S. economy have steadily dimmed since the summer. This week's reported 4%/8% drop in new/existing home sales and further deterioration in prices point to a housing market retrenchment that still has at least a year to run. Investors were served up some better news this morning, with the reported 0.6% gain in U.S. personal spending, which topped forecasts. Yet the spotlight quickly turned to the weaker-than-expected 0.3% gain in personal income that put downward pressure on the saving rate.

Given that 70% of U.S. GDP is tied to the consumer, so much of the near-term outlook Stateside rests on the performance of the job market, and in turn, the level of business confidence. We remain optimistic that the business sector will keep its head above water in the months ahead, supported by still-healthy balance sheets and cash positions. This week's report on durable goods for August highlighted the fact that while non-defense capital spending has slowed over the past few months, it remains at a respectable level. Certainly, next week's U.S. non-farm payrolls report for September will provide precious insights. Our bet is that employment growth resumed in the month, but by only 75,000 jobs. This pace is consistent with our outlook for lethargic quarterly real GDP growth of 1.5-2% in the near term.

Cross-currents in Canada's economy

The chillier headwinds from tighter credit market conditions and softness in the U.S. economy will not be lost on Canada's economy. Little reprieve can be expected in manufacturing, which has seen its cost edge evaporate from the surge in the Canadian dollar. In some areas notably autos U.S. producers appear to be moving to shore up profitability, exacerbating the manufacturing challenge for Canada. That said, other industries will continue to enjoy solid conditions. Consumer-driven industries, such as wholesale and retail trade, will continue expand at a decent rate, supported by a 33+ year low unemployment rate. These two industries also top the list of Canadian sectors actually benefiting from a soaring loonie. Housing markets may have started to cool in Alberta, but ongoing strength nation-wide should continue to provide enormous spill-over benefits across the gamut of goods and services industries. Although resource companies are confronting rising costs and a higher loonie, ongoing rapid expansion in China will continue to provide a solid underpinning on prices for oil and metals. Above all, this week's announced $14 billion federal budget surplus for fiscal 2006-07 served up a reminder that government coffers in Canada are the envy of the G-7, providing wiggle room to initiate tax cuts and other measures to help offset some of the challenges on the competitiveness front.

Netting out these offsetting headwinds and tailwinds, we project economic growth in Canada to run at a rate of about 2% over the next year. This moderate pace will continue to fuel debate about the Bank of Canada's likely next move. In a speech this week, Bank of Canada Governor Dodge indicated that the current rate setting was appropriate in view of the downside risks to growth and inflation emanating from the U.S. and the upside risks from booming housing activity.

As we discuss in the latest monthly edition of TD Global Markets, released yesterday, it is the inflation risk that is likely to win out, prompting the Bank of Canada to raise rates by 25 basis points in December after the Fed delivers one final rate cut at its October confab. Given that financial markets are pricing in more significant easing in the U.S. and are still betting on a modest easing in Canada, we are projecting a backup in yields on both sides of the border by 30-40 basis points by year-end. Lastly, the Canadian dollar will end the year at parity before falling back to about 95 U.S. cents in 2008. Article courtesy of R.Paul Chadwick from TD Canada Trust

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: buying strategy, house trends, housing prices, Interest Rates, Mortgage Interest Rates, Real Estate Market, Real Estate Strategies

Read more!

Lots of Lots for Sale

Lots of Lots for Sale in the USA

U.S. new home sales dropped a larger-than-expected 8.3% in August, to 795,000 units annualized, the lowest level in more than seven years. Although there were rumours of a double-digit decline ahead of the release, the fact that the three prior months were also revised down tempered any "better-than-worst-feared" talk.

New homes available for sale slipped 1.5% to 529,000 units. Although this is down for the fifth consecutive month, relative inventory levels remain elevated because demand has been falling more sharply than supply. Month's supply stood at 8.2, up 0.6 ppts from July and just a notch below March's 8.3 reading, which was the highest in more than 16 years.

The median sale price of a new home is down a steep 7.5% y/y, and even though this is not a great measure of house price deflation, it does support the dismal story that was already painted by Tuesday's S&P/ Case-Shiller home price index.

The Bottom Line: Weak new and existing home sales along with housing starts and building permits point to yet another hefty drag on GDP growth coming from the housing sector during the third quarter, and it shows no signs of letting up anytime soon.

Read about our marketplace

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: house trends, housing prices, Real Estate Market

Read more!

RBC Reports that Housing affordability hit on all sides

Housing affordability hit on all sides

Increases in house prices, mortgage rates, utilities and property taxes all combined in the second quarter to deliver a severe hit to housing affordability. By a slim margin, the portion of before-tax household income going towards home ownership costs suffered its largest and most broadly based quarterly deterioration in the current housing cycle stretching back to the mid-1990s.

Affordability deteriorated in every housing class we track, in every province and in every major city. In two short quarters, Saskatchewan has set a new affordability low concentrated in Saskatoon.

Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home. Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home. Alberta is still, however, avoiding British Columbia's stressed affordability conditions.

Housing market conditions from Manitoba eastward are not yet a cause for concern, but conditions in Saskatchewan, Alberta and British Columbia warrant caution given the speed of the massive turnaround in affordability in several key cities. The economic fundamentals are supportive, but have been priced in fairly aggressively. In our view, a continued cooling in the pace of price gains and an ongoing pull back in sales-to-listings ratios lie in the cards in these cities.

Toronto's housing affordability slid across all four housing segments, but outside the core Toronto area, housing market conditions are healthy and roughly balanced. The bigger risk to affordability conditions is the potential for higher property taxes towards the end of the decade after the current freeze on property value assessments is lifted in 2008.

Montreal's housing affordability also softened across every housing segment. However, Montreal's housing market remains one of the softest among the big cities.

Affordability deteriorated across the board in the Atlantic region, but the two-storey and condo segments saw the sharpest erosion. Despite Ontario's second-quarter affordability hit, a look at historical affordability numbers in Ontario should help calm nerves that the province may be at risk of a significant correction. Unlike many of the western provinces, affordability remains comfortably below levels reached in the late 1980s just before the major housing market crash.

Manitoba had its worst quarterly deterioration in more than a year, but is the most affordable region in the country and has managed to avoid the severe affordability stresses prevailing in neighbouring Saskatchewan, Alberta and British Columbia.

Courtesy of Dawn Aspinall RBC Economics Research

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: buying strategy, house trends, housing prices, Real Estate Market, Real Estate Strategies

Read more!

August sets the stage for a strong autumn market

August sets the stage for a strong autumn market

September 6, 2007 -- More people in the Greater Toronto Area bought resale homes last month than in any August before, Toronto Real Estate Board President Donald Bentley announced today.

The 8,059 sales reported last month exceeded the previous best performance for August, set in 2005, by seven per cent.

August also brought year-to-date figures up 13 per cent over the same period last year. So far this year 67,146 homes have sold as compared to 59,488 at this time in 2006. The pace is also 13 per cent ahead of the same timeframe in 2005, which became the best year on record.

"With five consecutive record-breaking months, spring and summer activity was unprecedented and given the strong economic fundamentals that remain in place, we have tremendous confidence in the autumn housing market," said Mr. Bentley.

The Greater Toronto Area's strongest sales activity in August took place in widely diverse neighbourhoods.

In West Agincourt (E05) a jump in the sale of detached homes and condo apartments resulted in a 34 per cent overall increase compared to last August.

An increase in the sale of detached homes and condo apartments also resulted in an overall increase of 52 per cent in High Park (W02).

In Toronto's Davisville (C10) the sale of semi-detached homes and condo apartments pushed overall activity in the district to a 58 per cent increase over August 2006.

Richmond Hill South (N03) showed a 43 per cent increase, led by condo apartment and detached home sales.

"Prices moderated in August, down approximately one per cent from the previous month, meaning that there will be many opportunities within reach during this autumn market," said Mr. Bentley.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: house trends, housing prices, Real Estate Market, resources, Toronto Market Watch, TREB average prices toronto 2006 2007, TREB real estate

Read more!

Luxury sales continue to rise across the country

Luxury sales continue to rise
Luxury sales experience serious upward momentum in major Canadian markets, says RE/MAX Mississauga, ON (September 5, 2007) -- Consistent return on investment has prompted an unprecedented upswing in luxury home sales in major Canadian centres so far this year, according to a report released by RE/MAX.

The RE/MAX Upper-End Market Trends Report examined trends and activity in 16 markets across the country between January and July 2007. Luxury home sales were up over the same period one-year ago in all markets, with percentage increases ranging from 13 per cent in Victoria to 521 per cent in Edmonton. Four markets, including Edmonton, Regina, Saskatoon and Ottawa, reported triple-digit increases while double-digit gains characterized remaining markets. The report also found that the upper-end price points were under stress in most markets surveyed.

“The consumer appetite for luxury property has been insatiable,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “Unabated demand throughout the year has created tight market conditions in a number of blue chip neighbourhoods. Limited availability of product has, in turn, placed mounting pressure on housing values. As a result, the million dollar home no longer holds the same cache it once did and in larger markets such as Vancouver, Calgary, and Toronto, it’s simply a starting price.”

Solid gains in housing values – especially in the top-end of the market – have garnered much attention. The steady upward trending has attracted a growing number of affluent purchasers who are taking advantage of both the increased equity and the capital gains exemption for a principle residence.

“Strong economic performance, especially in Western Canadian provinces, has bolstered consumer confidence levels to such a degree that purchasers in the upper-end are comfortable with a million dollar plus investment in real estate,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Recent volatility in the stock market may trigger further investment in real estate as purchasers move to reallocate their holdings.” Out-of-province and international purchasers are active in most markets surveyed, but locals still account for the majority of upper-end sales. Benchmark sales, including one home priced at close to $16 million in Toronto, are occurring with greater frequency and overall, there are more sales taking place in the very upper reaches of the marketplace this year. In smaller centres, benchmarks have been set throughout the year and although some, such as Regina, have yet to report a $1 million sale, the day is nearing.

Upscale condominium sales are also climbing as empty-nesters and retirees up the ante for these types of property. The most expensive sale to date occurred in Vancouver at close to $5 million, while the priciest listing carries a price tag of $18.2 million in the same centre.

“It appears that a growing percentage of the population has that kind of money to spend,” says Polzler. “Growth in market capitalization has generated tremendous wealth in recent years – in fact, both the Dow Jones and S& P 500 reported double-digit growth in 2006. Demand for luxury goods overall – upscale homes, fine art, collectable cars -- is outpacing demand for everyday consumables. Inheritance has played a significant role as well, with the download on an estimated $1 trillion amount already underway.”

“When it comes to shelter, these upscale purchasers clearly want it all,” says Ash. “Price is really no obstacle when it comes to creating a legacy.” RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated throughout its more than 640 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 34th year of consecutive growth, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage 120,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management. For more information, visit: www.remax.ca.

Read more about price trends in the GTA

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, house trends, housing prices, Real Estate Strategies, resources, Toronto Market Watch

Read more!

US Price Trends Improve, Existing-Home Sales Lag

Price Trends Improve, Existing-Home Sales Lag
During the second quarter, home prices improved in the majority of U.S. metro areas, but sales activity remained below year-ago levels in most states, according to research by the NATIONAL ASSOCIATION OF REALTORS®.

Price increases were apparent in 97 of the 149 metropolitan statistical areas surveyed by NAR. That compares with just 83 metro areas that had price increases in the first quarter of 2007, and 68 areas in the fourth quarter of 2006.

"Although home prices are relatively flat, more metro areas are showing price gains since bottoming-out in the fourth quarter of 2006," says Lawrence Yun, NAR senior economist. "Recent mortgage disruptions will hold back sales temporarily, but the fundamental momentum clearly suggests stabilizing price trends in many local markets."

The national median existing single-family home price was $223,800 in the second quarter, down 1.5 percent from the year-earlier period, when the median price was $227,100. The median is a typical market price where half of the homes sold for more and half sold for less, but there has been a downward skew in the national comparison because sales have declined in many high-cost areas and risen in some lower cost markets.

NAR President Pat V. Combs says homes continue to be good investments, especially since typical owners stay in their home for six years. "While local conditions vary greatly, a typical owner who bought six years ago is seeing a 45 percent increase in the value of their home," she says.

An analysis of all available data over the past six years shows almost every market experienced price gains from the second quarter of 2001 to the second quarter of this year.

Sales Pace Down 11% Nationally

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate of 5.91 million units in the second quarter, down 10.8 percent from a 6.63 million-unit pace in the second quarter of 2006.

Six states showed increases in the sales pace from a year ago; one was unchanged and complete data for two states were not available.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.37 percent in the second quarter, up from 6.22 percent in the first quarter; the rate was 6.6 percent in the second quarter of 2006.

Most, Least Affordable Areas in the U.S.

During the second quarter, median single-family home prices ranged from a very affordable $71,700 in Elmira, N.Y., to 12 times that amount in the San Jose-Sunnyvale-Santa Clara area of California, where the median price was $865,000.

The second most expensive area was San Francisco-Oakland-Fremont, at $846,800, followed by the Anaheim-Santa Ana-Irvine area (Orange County, Calif.), at $727,000.

In addition to Elmira, other affordable markets include the Youngstown-Warren-Boardman area of Ohio and Pennsylvania, at $76,700, and the Saginaw-Saginaw Township North area of Michigan, with a second-quarter median price of $86,900.

The biggest price gains were found in the Salt Lake City area, where the median price of $233,100 rose 21.9 percent from a year ago. Next was Binghamton, N.Y., at $111,200, up 19.8 percent from the second quarter of 2006, followed by Salem, Ore., where the second quarter median price rose 16.7 percent to $227,900. Most of the metros with price declines were modest, although four areas experienced double-digit drops.

The best total sales performance was in Wyoming, where existing-home sales rose 10.8 percent from the second quarter of 2006. In Iowa, the second-quarter sales pace rose 4.1 percent from a year ago, while North Dakota experienced the third strongest gain, up 2.9 percent. Oklahoma, Indiana, and Nebraska also posted annual sales gains.

A Closer Look at Regional Sales, Price Data

Northeast: Existing-home sales fell 6.8 percent to an annual pace of 1.05 million units in the second quarter from the same period a year ago. The median existing single-family home price rose 0.7 percent to $298,000 in the second quarter from the same period 2006.

After Binghamton, N.Y., the strongest price increase in the Northeast was in the Allentown-Bethlehem-Easton area of Pennsylvania and New Jersey, with a median price of $274,500, up 12.8 percent from the second quarter of last year, followed by the Reading, Penn., area, at $157,800, up 11.2 percent, and Glenn Falls, N.Y., which rose 10.7 percent to $175,500.

Midwest: Existing-home sales dropped 8.4 percent to a 1.39 million-unit annual level in the second quarter compared with a year ago. The median existing single-family home price was $163,500, down 2.2 percent from the second quarter of 2006.

The strongest metro price increase in the Midwest was Bismarck, N.D., area where the median price of $151,400 was 9.2 percent higher than a year ago. Next was Gary-Hammond, Ind., at $137,800, up 7.3 percent from the second quarter of 2006, and Bloomington-Normal, Ill., at $161,500, up 7 percent.

South: Existing-home sales in the South were at an annual rate of 2.31 million units in the second quarter, down 10.7 percent from the second quarter of 2006. The median existing single-family home price was $185,000 in the second quarter, which is 1.6 percent below a year earlier.

The strongest price increase in the South was in the Beaumont-Port Arthur area of Texas, at $127,700, up 11.8 percent from a year ago, followed by the Cumberland area of Maryland and West Virginia, with a 9.3 percent gain to $109,300, and Raleigh-Cary, N.C., at $225,100, up 8.4 percent.

West: The existing-home sales pace of 1.16 million units was down16.9 percent from the second quarter of 2006. The median existing single-family home price was $349,400 in the second quarter, down 0.4 percent from a year ago.

After Salt Lake City and Salem, the strongest metro price increase in the West was in Farmington, N.M., at $201,900, up 14.0 percent from a year ago, followed by the Spokane, Wash., area, at $197,700, up 10.4 percent from the second quarter of 2006.

What's Happening With Condos?

In the condo sector, metro area condominium and cooperative prices covering changes in 55 metro areas show the national median existing condo price was $226,800 in the second quarter, up 1 percent from $224,500 in the second quarter of 2006. Thirty-seven metros showed annual increases in the median condo price, including seven areas with double-digit gains; one was unchanged and 17 areas had price declines.

The strongest condo price gains were in the Salt Lake City area, where the second quarter price of $162,200 rose 25.2 percent from a year earlier, followed by Reno-Sparks, Nev., at $220,500, up 17 percent, and the Austin-Round Rock area of Texas, where the median condo price of $172,100 rose 14.9 percent from the second quarter of 2006.

Metro area median existing-condo prices in the second quarter ranged from $116,400 in Greensboro-High Point, N.C., to $608,700 in the San Francisco-Oakland-Fremont area. The second most expensive condo market reported was Los Angeles-Long Beach-Santa Ana, at $413,400, followed by the San Diego-Carlsbad-San Marcos area at $368,600.

Other affordable condo markets include Wichita, Kan., at $117,900 in the second quarter, and Rochester, N.Y., at $118,900. from REALTOR® Magazine Online

This was an interesting perspective from the USA on their current marketplace

Read more about our Toronto and GTA Real Estate Marketplace and Average Price Trends

For more information please contact me.

Thank you,
Mark

A. Mark Argentino
P. Eng. Associate Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
Website : Mississauga4Sale.com

Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

P. S. If you have not already signed up to receive my monthly real estate newsletter, you may do so here:
On-Line Real Estate Newsletter sign up

Labels: housing prices, national prices, resources

Read more!

Where is the market heading? In light of increased mortgage interest rates.

I received another email question today and thought I would post my long-winded answer below and share my thoughts with you too.

Enjoy! Mark

The question was:

Just wondering what is happening in the market after interest rates went
up.

Is there a lot of Townhomes on the market and are prices coming down.
Just wandering if is a good time to invest again.

Thanks

A.

Here's my answer:

Hi A.,

The market is quite fast these days. Normally, it slows down in the summer, but this summer has been quite active. Average prices are down a couple of percent which is typical for this time of year, but the volume of sales is hitting records. See the link below. Normally there are about 40-50 townhomes in Erin Mills for sale at any one time, but there are only 34 right now and many of them are conditionally sold.

Yes, this is a very good time to invest.

I realize the rates have increased but only marginally and it will likely only be short term. We are going short on all of our mortgages, time proves short term is by far the better option, see here, of course probably until I follow that method! :-))

There are not too many major scenarios that will cause real estate market to tank. One scenario is major global catastrophe or war or terrorist act. All could cause sudden and major drop in market, but the stock market would take a huge hit too. So would our entire economy, so all things being equal, anything major will affect everything, so real estate should still be a good long term investment. Time has proven real estate will recover and then some, so I am not worried, besides, it would just mean we get less rent, if we don't have to sell, all is fine, but more properties!

Another thing that could happen is that interest rates continue to climb. Once they reach 7 or 8 percent the economy will slow and then rates will stabilize and/or come down again. This may only last a year or two and then the economy will settle down again. Increasing rates certainly cut out the very bottom entry level buyers, but there seems to be enough buyers out there to sustain and continue to cause prices to rise and record sales month after month.

Another possibility is the US economy continues to be bad or gets worse. Although it used to be that "if the US got a sniffle Canada would get a cold or the flu", no longer seems to be the case. Our marketplace in the GTA, Ontario and Canada seems to have been insulated from events in the US since about 911 and seems to be able to sustain itself regardless of what happens to our friends south of the border.

Oil prices rise to $100 or more per barrel. Again, yes, this will have an impact on our marketplace, but maybe only short term. The demand for gasoline seems to be completely inelastic, regardless of how high gasoline and oil prices rise, we still drive large vehicles and conserve very little. We may complain like hell about the price at the pumps, but we pay it and keep driving.

US election years have almost always caused our market to slow, EXCEPT in 2004. Thus, it's your guess whether our market and economy slows next year or not.

Un-Employment rates rise, due to dollar, economy or overseas markets could cause our market to slow, people spend less money and the economy stalls, again, this would affect all markets, not just real estate.

Another scenario is that the baby boomers all get old in the next ten years and sell off their real estate and/or give it to their kids who cash out. Either way, if a flood of listings were to come on the market it could affect our prices in the short and long term. Personally, this does not worry me. There seems to be enough people out there to absorb any increase in inventory, but only time will tell on this one. I believe it will be much more gradual than people think. Fractional ownership worries me more than the boomers cashing out. I may be wrong on this and I've not researched the success or failure of fractional ownership in other parts of Canada or the world, but if time shares are any indication, I think that this may hurt more people than help them in the long run.

At any rate, these are some of the scenarios that the doomsayers are predicting and hopefully none of them will come to fruition and even if they do, I feel they will have less impact on our real estate market than some think.

There are other possible scenarios, I would like to hear your feelings and ideas, but these are some of the major reasons for large price swings in the market in the past and could be for the future too.

If history repeats itself again this fall, prices will likely escalate again in mid to late September until middle of November, see the graph here, so make your purchase soon or wait until December 10th to purchase and hope there are some listings on the market at that time that you like!

In summary, and I know it sounds corny, I still go by the old adage that the best time to buy real estate is yesterday.

Thanks,
Mark

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, housing prices, Interest Rates, national prices, Real Estate Market, Real Estate Strategies, resources, TREB average prices toronto 2006 2007, TREB real estate

Read more!

TREB Real Estate Market Continues to set Fast Pace

August Report - More Records Broken
August 2, 2007 -- TREB Members reported 8,912 total sales in July, 26 percent ahead of the 7,082 sales recorded in July of 2006, and an all time record for the month.

Furthermore, July makes the fourth month in a row that sales have broken monthly records. "The local resale market is as healthy as it has ever been," said TREB President Donald Bentley. "Not only are we running 13 per cent ahead of last year's January - July total of 52,682, we are running 14 per cent ahead of the seven month total for 2005, which became our best year ever."

While sales have set a blistering pace, prices eased in July, down two per cent to $366,012 from June's average of $373,719. "This decline is seasonal in nature," said the President. "Prices tend to ease in July/August as potential homebuyers and sellers go on holiday." He went on to note that the year-to-date average, at $373,326, was up five per cent over the same time-frame in 2006.
See graphs of the average historic TREB prices

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: house trends, housing prices, Toronto Market Watch, TREB average prices toronto 2006 2007, TREB real estate

Read more!

Mortgage Rates to Remain Historically Low

Mortgage Rates to Remain Historically Low

A combination of a strong Canadian dollar vis-à-vis the U.S. dollar and modest GDP growth will help keep Canadian interest and mortgage rates low over the remainder of this year and in 2008. One, three and five-year posted mortgage rates are forecast to be in the 5.75 - 6.75, 6.00 - 7.00, and 6.25 - 7.25 per cent ranges respectively over the rest of this year and in 2008.

Mortgage rates have moved slightly higher so far this year and are expected to drift-up modestly in the first half of 2008. However, while mortgage rates won’t increase much, higher house prices will push mortgage carrying costs higher. This will ease housing demand, particularly for first-time buyers.

MLS price growth will remain strong in 2007 at 9.6 per cent, pushing the average price to nearly $303,500, reflecting continued price pressures in western Canada. In 2008, the average MLS price will reach about $318,400, an increase of 4.9 per cent.
Source: CMHC - www.cmhc.ca

Most buyers are first time home buyers

Most Intending to Buy a Home in 2007 are First-Time Home Buyers
According to CMHC’s newly released Renovation and Home Purchase Report - Major Market Highlights, a large share of intenders will be first time buyers.

Close to half (48 per cent) of purchase intenders will be first time buyers with the majority of first time buyers between the ages of 25 and 34, with a household income between $80,000 to just under $100,000.

How do home buyers intend to finance their future purchase? Over half of potential home buyers are planning to make a down payment of less than 25 per cent of the expected value of their purchase. The main sources of down payment funds are household savings for 37 per cent of potential home buyers, while equity from the present/previous residence is also a popular option with 27 per cent.

Housing Starts Decrease in June
The seasonally adjusted annual rate of housing starts was 225,500 units in June, down from 235,200 units in May. “Following a significant increase in May, the volatile multiple segment lost most of the ground it gained in June,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Although housing starts will remain high in 2007, they are expected to resume a gradual decreasing trend. This is confirmed by the single detached component, which is slightly below the levels of the last two years.”
Want to read more about housing starts? Visit http://www.cmhc.ca/en/corp/nero/nere/2007/2007-07-10-0815.cfm

Read more about Mortgage Interest Rates

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying, buying strategy, first time buyers, housing prices, Interest Rates, Real Estate Strategies, resources

Read more!

Canada’s inflation reprieve likely to be short-lived

Canada’s inflation reprieve likely to be short-lived

Canada’s core inflation rate edged back down to 2.2% in May after hitting a four-year high of 2.5% in April. The monthly core rate increase of 0.3% was below the rapid 0.5% increase recorded last May, but faster than April’s 0.2% rise and almost double the average monthly pace in the core rate in the past two years, indicating that upward price pressures are not abating.

Even if the CPIX goes up by the average rate that it increased during the past seven Junes, the year-over-year core inflation rate would be 2.6% — the fastest pace of increase since March 2003 and reaching toward the 3% upper limit of the Bank of Canada’s 1% to 3% control target band.

Average Prices since 1985

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: housing prices, Interest Rates, resources

Read more!

Canadian and International Monetary comments on interest rates and inflation

Canadian and International Monetary comments on interest rates and inflation

• The risk that inflation will remain in the upper end of the Bank of Canada’s target band will put policymakers back into rate hike mode in July.

Bank of Canada
• We expect the Bank to boost the policy rate to 5.25% to ensure that growth slows enough to curtail upward inflation pressures.
• Although core inflation has moderated, strong wage growth along with elevated input prices will keep the Fed on the sidelines this year.

Federal Reserve
•A stronger U.S. economy and persistent upward inflation pressures will likely see the Fed hike rates early next year.
1 • Once inflation moves back above zero, the Bank of Japan is likely to start hiking rates again.

Bank of Japan
• Policymakers will deliberately keep the pace of rate increases slow in order to ensure that the economy remains on a firm path

European Central Bank
1 • The ECB is expected to continue to raise rates as inflation risks are skewed to the upside and monetary policy remains stimulative.

Central bank watch
• We expect that policymakers will raise the policy rate to 5% by mid- 2008 to nip upward inflationary pressures in the bud.

• The Bank of England has adopted a more aggressive tone and we now expect a 25 basis-point rate hike in July with another boost likely in November.

Bank of England
• Inflation is expected to settle at 2% in 2008 with the policy rate holding at 6%.

Inflation
Canadian real rates still historically low
The robust growth in Canada’s labour force is ... while productivity growth is expected likely to slow given record-high participation to ramp up after four years of strong inrates and demographic factors...

© Royal Bank of Canada. The material contained in Financial Markets
Monthly is the property of Courtesy of RBC Financial Group

more about rates and inflation

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: house trends, housing prices, Interest Rates, investment property purchase, Real Estate Market, resources

Read more!

Canadian National Housing prices since 1990 to 2005

MLS® Average Residential Price - Canada and Provinces 1990–2005 (dollars)

Canada Housing Observer

Now in its fourth year of publication, the Observer is a flagship CMHC publication that presents a detailed annual review of housing conditions and trends in Canada and the key factors behind them.

The 2006 edition included an enlightening chart comparing housing costs across the country over the past 15 years, a sampling of which follows:

MLS® Average Residential Price - Canada and Provinces 1990–2005 (dollars)

See Toronto and GTA average price graphs

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, housing prices, national prices, Real Estate Market, Toronto Market Watch, TREB average prices toronto 2006 2007

Read more!

New Housing Costs rise Substantially in April

The cost of new housing rose substantially in April, rising 0.8 per cent from the previous month.

Contractors' selling prices were up 8.9 per cent from a year earlier as 12 of 21 metropolitan areas surveyed registered increases.

Edmonton led all monthly increases, at 4.4 per cent, as well as annual increases, at 40.5 per cent.

Regina (up 2.2 per cent), Saskatoon (2.1) and Calgary (2) followed as monthly price advances were mostly attributable to materials and labour; noteworthy gains were also recorded in Halifax, Greater Sudbury and ThunderBay, Ont., and Vancouver.

Five metropolitan areas registered no monthly change. Victoria (-0.9%) recorded the largest decrease due to a moderating market. Prices in St.John's, Saint John, Fredericton and Moncton, and Charlottetown also declined.

Land prices rose in only five of 12 metropolitan areas surveyed.

See more statistics for resale homes at this page

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: housing prices, national prices, resources

Read more!

Residential Real Estate Shatters Records Across Canada

MLS® resale housing market shatters all previous records in May
Major market activity on track to set a new annual record in 2007

OTTAWA – June 14, 2007 – MLS® residential sales activity, new listings, average prices and dollar volume in Canada's major markets broke all previous monthly records in May, according to statistics released by The Canadian Real Estate Association (CREA).

Actual MLS® home sales activity in Canada's major markets was up 11.6 per cent year-over-year to 42,039 units in May 2007. Led by year-over-year gains in Toronto and Montréal, this was the first time in history that sales activity in Canada's major markets surpassed 40,000 transactions in one month.

On a seasonally adjusted basis, activity rose by 1.3 per cent from the previous month to 31,053 units in May. The increase was fueled by a monthly increase in activity in Vancouver, Winnipeg, London & St. Thomas, Ottawa and Montréal. Seasonally adjusted sales activity set new monthly records in Winnipeg, Ottawa, Montréal and Saint John, and reached the second highest level on record in Saskatoon, Regina and Toronto.

“Dramatic price increases and additional listings in Alberta's major markets are causing some buyers in that province to take a bit longer to make a purchasing decision,” notes CREA Chief Economist Gregory Klump.

Year-to-date transactions also set new records in most major markets in May. Transactions via Board and Association MLS® systems numbered 165,800 units in Canada's major markets during the first five months of 2007, which represents an increase of 8.5 per cent over the same period last year.

“Activity broke all previous records in the first quarter, and gained momentum in the second quarter,” Klump said. “The increase in transactions for the year-to-date suggests activity is on track to set a new annual record this year.”

MLS® residential new listings also reached the highest level ever in May, climbing 6.7 per cent year-over-year to 63,165 units. This was also the first time that the number of new listings on Board and Association MLS® systems in Canada's major markets surpassed 60,000 units in a single month.

Seasonally adjusted MLS® residential new listings rose 0.8 per cent month-over-month to 49,665 units in May to surpass the previous monthly record set in October 1990. The monthly increase was fueled by a large rise in new listings in Edmonton, and additional new listings in Calgary and Saskatoon. Seasonally adjusted new listings in Calgary and Edmonton reached their highest levels ever in May.

The major market MLS® residential average price rose 10.2 per cent year-over-year to set a new monthly record of $333,524 in May. Average price reached the highest monthly level on record in many of Canada's major markets including Vancouver, Calgary, Edmonton, Regina, Saskatoon, Toronto, London & St. Thomas, Hamilton-Burlington & District, Montréal, Quebec City and Halifax-Dartmouth.

“With mortgage interest rates on the rise and an increasing supply of new listings on the market, CREA expects that price increases will return to the single digits in the second half of this year,” added Klump. “CREA forecasts that the annual national average price will rise by 9.5 per cent in 2007, and by 5.5 per cent in 2008.”

“Canada's resale housing industry is a driving force behind the national economy, and a new study released by The Canadian Real Estate Association shows the average MLS® home sale generates $32,200 in additional consumer spending above and beyond the purchase price,” said CREA President Ann Bosley. “Job creation is also a major spin-off benefit of the resale housing market, with more than 94,000 jobs created in Canada each year as a direct result of resale housing transactions.”

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada's real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 90,000 REALTORS® working though more than 100 real estate Boards and Associations. CREA's primary mission is to represent members at the federal level, and to defend the public's right to own and enjoy property.

This report is published by the Communications Department of The Canadian Real Estate Association (CREA). Further information can be found at www.crea.ca.

Read more about average prices

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, house trends, housing prices, national prices, resources

Read more!

Toronto Housing Market for June 2007 - another blistering month!

June Report: Toronto Housing Market Reaches New Heights!

June 5, 2007 -- With an astonishing 11,146 sales in May, the Toronto Real Estate market put in its best performance since records have been kept, President Dorothy Mason announced today. "The Toronto Real Estate Board has been tracking the local housing market for over forty years, and there has never been a month that even approaches this level of activity," Ms. Mason stated. "May was up 18 per cent over April, our previous record month (9,452 sales), and also up 18 per cent over May of 2006 (9,434 sales), which now ranks as the third highest sales total recorded."

Ms. Mason further noted that, according to statistics compiled by the Canadian Real Estate Association, every home sale generates about $27,000 in economic activity (for renovations, furniture purchases, and so forth) over and above direct expenditures involved in the transaction. "This means that Realtors® and their clients have contributed over $300 million to the local economy in ancillary costs last month alone."

However, while sales sky-rocketed, price increases were restrained, with the average rising a mere five per cent to $382,787 from the $365,537 recorded during May of 2006.

Breaking down the totals,
4,175 sales were reported in TREB’s 28 West districts and averaged $356,836
2,038 sales were reported in the 14 Central districts and averaged $506,172
2,323 sales were reported in the 23 North districts and averaged $408,391
2,610 sales were reported in TREB’s 21 East districts and averaged $305,168

See district areas

NB: the average price rose 1% in May compared to April

See a graph of this month and previous months sale prices

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: housing prices, resources, Toronto Market Watch, TREB average prices toronto 2006 2007, TREB real estate

Read more!

How Do Canada’s executive homes rank with others around the world?

How Canada’s executive homes rank with others around the world

A new survey by Century 21 Canada says that executives working in the
downtown business districts of Canada’s hottest real estate markets,
such as Vancouver and Calgary, experience house prices and daily
commute times that rank with those in the world’s major financial
centres of London, England, New York, Paris and Seoul.

The survey of typical house prices was conducted by Century 21 Canada
in 15 cities in Canada and in 16 cities around the world.

In Canada’s regional hub cities, such as Halifax, Winnipeg and
Saskatoon, executives working downtown face house prices and daily
commute times that rank with the world’s least expensive capital
cities such Moscow, Singapore and Istanbul.

In between are Toronto, Montreal, Ottawa, Quebec City and Victoria,
where executive prices and daily commute times compare with Tokyo,
Taipei and Mexico City.

Don Lawby, president of Century 21 Canada, says, “Whether executive
house prices are at the high or low end of the range, in Canada or
elsewhere in the world, depends on the current state of the local
economies – and our survey reflects that Vancouver and Calgary are
booming whether you compare them to cities in the rest of Canada or to
cities around the world.”

He says Canadian cities at every price level have benefits that can’t
be measured in dollars or commuting time.

“All things considered, Canadian cities offer among the best living
and working conditions in the world. We have low levels of population
congestion, we breathe fresh air, nature is at our doorstep, and we
have few security problems. You can’t say these things of many other
major cities in the world, which might have stifling heat or humidity,
crushing congestion, or choking pollution.

“Our three largest cities – Toronto, Montreal and Vancouver – are as
cosmopolitan as any cities in the world. We can sample and enjoy
nearly all the major cultures of the world right here,” says Lawby.

The homes selected for inclusion in the Century 21 survey are based on
the knowledge and experience of Century 21 brokers in each of the 31
cities around the world. Their selections are representative of the
typical homes chosen by executives who work in the downtown core in
each of the cities.

The survey found that the 10 most expensive housing markets for
executive home buyers working in the downtown business districts are
London, England, $5.68-million; New York, $2.5-million;
Vancouver, $1.55-million; Sydney, Australia, $1.4-million; Paris,
$1.39-million; Seoul, $1.25-million; Calgary, $1.2-million; Nicosia,
$1-million; Toronto, $890,000; and Victoria, $850,000.

The 10 least expensive markets are Moncton, $249,900; Singapore,
$304,135; London, Canada, $325,000; Bogota, $368,852; St. John’s,
$379,000; Charlottetown, $379,000; Saskatoon, $429,000; Winnipeg,
$450,000; Istanbul, $471,927; and Edmonton, $489,900.

“Another way to view the survey results and to provide another
observation into the lifestyle of executives around the world is to
compare the price to the size of the home,” says Lawby.

“This shows that markets where homes are traditionally smaller – such
as Taipei and Tokyo – move toward the top of the list, while Toronto,
Victoria and others fall from the top 10,” says Lawby.

When comparing prices to sizes of the homes, the Century 21 survey
found that the 10 most expensive housing markets in the world for
executive home buyers working in the downtown business districts per
square foot are London, England, $3,156; Paris, $1,163; Seoul, $1,097;
Calgary, $800; Sydney, Australia, $722; Taipei, $613; Vancouver, $574;
Athens, $491; New York, $480; and Tokyo, $385.

The 10 least expensive markets per square foot are Mexico City, $75;
London, Canada, $98; St. John’s, $105; Moncton, $119; Halifax, $125;
Bogota, $137; Charlottetown, $146; Quebec, $147 Winnipeg, $150; and
Johannesburg, $163.

Some examples of typical executive homes from the Century 21 study:

In Toronto, a typical executive choice would be a four-bedroom,
five-bath 3,200-square-foot home on a 7,500-square-foot lot near Yonge
Street and Steeles Avenue, priced at $890,000 and a 45-minute drive to
the Bay Street financial district.

In Montreal, a typical executive choice would be a three-bedroom,
two-bath 2,000-square-foot home on a 19,656-square-foot lot on a golf
course at Blainville, priced at $589,000 and 40-minute commute to
downtown by train or car.

In Vancouver, a typical executive choice would be a four-bedroom, 2 ½
bath 2,700-square-foot home on an 8,750-square-foot-lot in
Ambleside-By-The-Sea in West Vancouver, priced at $1.55 million and a
30-minute commute across the Lion’s GateBridge to downtown Vancouver.

In Calgary, a typical executive choice would be a three-bedroom,
three-bath 1,500-square-foot home on a 6,250-square-foot-lot in
Roxboro, priced at $1.2 million and a 25-minute drive to the downtown
business core and the CalgaryTower.

In Winnipeg, a typical executive choice would be a four-bedroom, 3 ½
bath 3,000-square-foot home on a 9,000-square-foot lot in Tuxedo,
priced at $450,000 and a 15-minute drive to Portage Avenue and Main
Street, the downtown focal point.

In Halifax, a typical executive choice would be a four-bedroom,
three-bath, 4,000-square-foot home on a one-acre country lot in
Kingswood, priced at $500,000 and a 30-minute drive to the downtown or
to Citadel Hill, the national historic site overlooking the harbour.

In New York, a typical executive choice would be a five-bedroom,
five-bath 5,200-square-foot home on a 20,878-square-foot lot, priced
at $2.5 million in RoslynHeights, Long Island, and 45 minutes to the
Wall Street financial district by subway or car.

In London, England, a typical executive choice would be a two-bedroom,
two-bath, 1,800-square-foot penthouse apartment in fashionable Notting
Hill, priced at $5.68 million, a 30-minute drive to the financial
district and a 15-minute stroll to KensingtonPalace and Gardens.

In Paris, a typical executive choice would be a three-bedroom,
one-bath 1,195-square-foot duplex apartment in the city centre, priced
at $1.39 million and a three-minute walk from the Sacré Cœur Basilica.

In Seoul, a typical executive choice would be a four-bedroom,
two-bath, 1,139-square-foot apartment in Gangman district on the south
side of the HangangRiver, priced at $1.25 million and a 30-minute
commute to the business core.

In Sydney, Australia, a typical executive choice would be a
three-bedroom, two-bath 1,938-square-foot penthouse apartment in
Pagewood, priced at $1.4 million, 20 minutes from the downtown and 15
minutes from the Sydney Opera House.

In Tokyo, a typical executive choice would be a four-bedroom, two-bath
1,722-square-foot home on a 1,884-square-foot lot at YokohamaCity,
priced at $663,109 and 45 minutes by train to downtown Tokyo.

Read more about Toronto Prices

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, house trends, housing prices, national prices, resources

Read more!

Current Canadian Interest Rate Marketplace HIGHLIGHTS

HIGHLIGHTS of the current marketplace

Easing U.S. core inflation and strengthening retail spending to sooth Fed
Inflation in Canada a concern ahead of next week’s Bank of Canada interest rate announcement
Ask anyone tasked with predicting the direction of
monetary policy in the United States and they’ll
certainly say it has been quite windy on the fence.
Gusts of concern about the persistently elevated
level of core inflation give way to worries about
the economic slowdown with alarming regularity. And
just when there appears to be a consensus supporting
a shift towards a neutral bias, the Fed itself
changes the wind direction (recall the relatively
hawkish minutes to the last FOMC meeting). So it was
a welcome change this week that the flow of economic
data came close to balancing itself out, leaving the
likely woozy Fed-watcher with a moment of calm to
survey the landscape.

The most soothing breeze accompanied March’s
consumer inflation report. All eyes looked beyond
the gasoline-induced rise in total inflation to
focus on the moderation in core, which subsided from
2.7% in February to 2.5%. The core price index
itself rose just 0.06% in the month – marking the
smallest gain in almost two years. More importantly,
the longer term trend in core inflation was also
encouraging, as both the three- (2.3%) and six-month
(1.9%) annualized rates eased in the month. Of
course, a single data point in isolation will not
immediately wash away inflation concerns, but it
represents a step in that direction.

On the other side of the fence, new data this week
suggested that conditions in the housing and
consumer sectors – two areas of particular concern –
may be in better shape than previously thought. The
largest piece of evidence was March’s retail sales
report. The 0.7% increase in headline sales was
largely fuelled by higher prices at the pump,
pushing up the value of sales at gasoline stations.
But the so-called core measure (excluding volatile
sales of autos and those at gasoline stations)
delivered a respectable 0.4% increase. What was even
more encouraging was a large upward revision to
February, which helped boost the three-month
annualized trend in core retail sales to 5.3% from
the relatively anaemic 3.5% pace observed in the
previous month. Even the housing market contributed
an iota of good news as both housing starts and
building permits showed a surprising 0.8% increase
in March. Before breaking out the party hats, it is
important to remind ourselves of the inherent
volatility in this series, which is accentuated by
the fact that virtually all of the new starts were
confined to the Mid-West which in turn was buoyed by
very favourable weather conditions.

So with this week’s economic data presenting a
reasonably balanced view of the U.S. economy, the
key question is, how long the reprieve will last and
on what side of the fence will the final teeter turn
into a tumble? Here, we see the risks staking up on
the downside. As long as the inventory of unsold
homes remains elevated, the housing market will have
further to fall. Meanwhile, the consumer has been
able to weather the loss in wealth from falling home
prices, but they will increasingly have to rely on
other sources of income to sustain their spending.
So far, the labour market has been up to the task,
generating modest employment growth accompanied by
wage gains. Provided that the job market is not
undermined by the recent weakness in business
investment, we believe the Fed will leave rates
unchanged, especially if inflation fails to cool
further.

Inflation on the radar in Canada

Canada’s invitation to the elevated-inflation party
must have been delayed in the mail. But now that it
has arrived, inflation has jumped to the forefront
for financial markets, especially with the Bank of
Canada set to announce their next interest rate
decision next week. Indeed, particular attention was
paid to Thursday’s CPI report for the month of
March. And here, the data was tipped to the
encouraging side in that core inflation backed
modestly away from its recent 2.4% peak set in
February, settling at 2.3%. However, March was the
ninth consecutive month that core inflation was at
or above the Bank’s 2% target. Within the details,
shelter costs continue to play an important, albeit
lessening role in keeping core inflation elevated.
With new home price appreciation expected to cool
across Western Canada, there should be further
easing within this component which will help
alleviate some of the upward pressure on inflation
in the quarters to come.

Despite the slight moderation in March and a cooling
housing market in Western Canada, an above-target
rate of core inflation will be a familiar sight in
the months to come – reflecting the fact that the
economy is operating at its productivity capacity.
While the labour market, with its unemployment rate
at a generational low, stands out as an example of
this reflection, the business sector is following
closely behind. Not only did the Bank of Canada’s
Business Outlook Survey note heightened optimism
among firms, but that capacity constraints were also
increasing. Seeing through the weather-induced fall
in February’s inflation-adjusted retail sales, the
domestic economy remains extremely healthy.
Meanwhile, an evaluation of the trade side, which is
still Canada’s pocket of weakness, has been obscured
to varying degrees by the 15 day CN Rail strike in
February. The greatest effect was captured last week
with the release of international trade which showed
a pronounced decline in exports. This week,
manufacturing shipments also were down, but not by
as much as one would expect – suggesting some
underlying strength. Similarly, wholesalers shrugged
off the strike entirely and registered a surprise
0.8% gain in February. It will take another month or
so of data to see through this volatility, which in
turn will help keep the Bank on hold next week,
although a greater acknowledgement of the risk to
inflation may be warranted. Indeed, the Bank will
have the perfect opportunity to do so in detail next
week with the release of the Monetary Policy Report
on Thursday. Article Courtesy of R.Paul Chadwick Manager of Residential Mortgages, TD Canada Trust

Read more about the current state of the real estate market

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying, house trends, housing prices, Interest Rates, Real Estate Market, Real Estate Strategies, resources

Read more!

What Percentage do you think the single home prices will increase annually in the next 5 years in Mississauga?

This was a good question in an email and I thought you may wish to read my response.

DEAR MARK
THANKS FOR SENDING THE VALUABLE INFORMATION ON REAL ESTATE. AT WHAT RATE PERCENTAGE DO YOU THINK THE SINGLE HOMES' PRICES WILL INCREASE ANNUALLY IN THE NEXT FIVE YEARS IN MISSISSAUGA ?. I AM EXPECTING AN HONEST REPLY ON THIS.THANKS .
Arun B.

Hello Arun B.,
Thank you for your real estate inquiry. In my opinion, nobody can predict what the markets will do over that period of time. I can tell you that the market will remain strong for at least the next 1 to 2 months. There are changes in our market. It is not 'on fire' the way it was for the past few years. If you look at this graph, you will see that the market has only continued to climb at a high rate of about 6% to 8% per year since 1995
No matter what anyone has told you, the west GTA market has slowed compared to recent years, it's still a good market but not booming the way it way. People who bought new homes in any year from about 1998 could resell the home for a large profit by the time they closed. This is no longer the case. People who bought new homes last year and have just closed are having difficulty breaking even. This is in spite of the fact that we are at the 'high time' of the year.
Another observation. For the first time that I can ever remember, and I have been tracking prices since I got into the business in 1987, the March average price was lower than the February average price. This is unheard of. For the past 20 years March prices were higher than February, except this year. The price dropped 1%, not a large amount, but it dropped rather than increase. This too is significant and indicated our market is not booming any more. This could change in the future, but for the near future prices are likely to stay about the same as they are now.
My 'best guess' for the long term is that we will see increases in year over year prices, but they will be about 2 to 3% per year and not the 5 to 8% that we have seen in years over the last decade. There will always be pockets that will outperform the average prices and this too is one of the keys when buying real estate. It is still all about location.
Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,
Mark

Read more about prices

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, house trends, housing prices, investor, national prices, Real Estate Market, resources

Read more!

CIBC World Markets predicts Canadian house prices will double in the next 20 years

The Canadian Imperial bank of Commerce (CIBC) has issued a press release and they predict that the price of real estate in Canada will double in the next two decades

CIBC World Markets predicts Canadian house prices will double in the next 20 years
Wednesday April 18, 9:00 am ET

- Fears of a decline sparked by demographics greatly exaggerated -
TORONTO, April 18 /CNW/ - CIBC (CM: TSX; NYSE) - Canadian house prices are likely to double in the next 20 years, according to a CIBC World Markets report released today, entitled "Much Ado About Nothing: Canadian House Prices Not Based on Demographics Alone."

"Despite downward pressure from demographic forces, on average, we expect house prices in Canada to double in the next 20 years," says Benjamin Tal, Senior Economist, CIBC World Markets. "Fears of a decline resulting from the downsizing and increased liquidations of houses by seniors and the falling number of first time buyers are highly exaggerated."

The CIBC report compares population growth between two cycles of housing prices, from 1987 to 2006 and from 2007 to 2026, using Statistics Canada's medium-growth, medium-immigration projection as a benchmark.

Between 2007 and 2026, the projected 167,000 net decline in the number of first time buyers (Canadians between the ages of 25 and 44) is marginal, at best, Mr. Tal said. Since this age group is by far the largest contributor to overall housing demand, accounting for almost 68 per cent of all home sales, this relatively modest downturn will not significantly impact housing demand.

The largest decline (2.5 million) is projected for the 45 to 54 age group, as many baby boomers move to the next age bracket. The impact of this change is also expected to be limited, given that the 45 to 54 age group accounts for only 12 per cent of total housing demand. In fact, this moderate decline in housing demand will be partly offset by the strong increase in the age group 55 to 74 and its surprisingly high housing market activity - largely reflecting purchases of vacation and investment properties.

"We estimate that in the coming twenty years, the Canadian housing market will face extra supply of roughly 250,000 houses," adds Tal. "While at first glance this appears to be a large number, it means an average extra supply of only 12,500 homes a year during that period."

Considering that total housing starts during the previous cycle averaged 180,000 per year, builders will only have to reduce new supply to just under 170,000 to completely eliminate any negative demographic influence on house prices compared to the previous cycle.

Concerns regarding the impact of demographic forces on the Canadian housing market were first raised in the late 1980s. However, during the twenty year period from 1987 to 2007, Canada experienced a three per cent annual increase in real home prices.

Although housing market activity in the coming 20 years will fluctuate, CIBC projects that the average real house price will mirror the performance of the past two decades.

"Assuming a two per cent annual inflation rate, this means that house prices in Canada are expected to double by 2026," said Mr. Tal. "This increase, of course, will not be symmetrical - with large cities seeing even larger increases in home valuations."

See average price graph for past 20 years

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, house trends, housing prices, investment property purchase, national prices, Real Estate Market, Real Estate Strategies, resources

Read more!

Did the bottom fall out? Overvalued Canadian market or just a matter of time before we follow the US?

I've been reading articles recently about the fact that our real estate market prices have cooled. Will the souring US markets eventually affect our markets here in Canada? Many think this may be the case. Or could this be due to a one month (March) price drop?

This person below seems to think our market prices will fall in the future because we are influenced so much by what happens in the US. Nobody knows for sure, but if the press continues to publish articles like this our markets may follow their lead!

All the best,
Mark

Prepare for lower real estate prices
No guarantee that U.S. meltdown won't spread here

It's hard to find experts in Canada who are concerned that the real estate chaos swirling around next door could hop the border and rattle the housing market here. Well, not yet anyway.

Those who believe the Canadian market is on solid ground will find evidence to support their views when they get a look at housing starts for March (released this morning) and the new housing price index for February (tomorrow). Both are expected to show that Canada's housing market is holding steady amid the downturn to the south.

But if you're the sort of investor who can't help but wonder if Canada must eventually follow the U.S. lead -- a natural instinct given that Canada follows on so many other issues -- you may want to skip the Canadian figures.

Instead, head straight for the words of U.S. central bankers and get their take on housing: The worse it is in the United States, the more reason to worry about the situation here.

This afternoon, the U.S. Federal Reserve releases the minutes from the last Federal Open Markets Committee, on March 21. At that meeting, the committee left short-term interest rates unchanged, but said in its statement that "the adjustment in the housing sector is ongoing."

That is likely code for "quite frankly, the housing sector scares us" -- and the minutes will say more about it.

They have good reason to be scared. In the United States, home prices are tumbling, foreclosures are rising and few are confident the downturn has hit bottom yet. It's a rough time to contemplate buying a home.

Just as worrying, tightening credit conditions and the fact that current homeowners can no longer count on an appreciating market could wreck consumer confidence, which can hit economic growth.

Most Canadians are fully aware of our neighbour's problems. However, the prevailing wisdom is that real estate is a local market and it all boils down to the ''location, location location'' mantra, which should protect us from any sort of copycat debacle.

"Can we say that there are ominous parallels between what is happening in the U.S. and what will happen in Canada? I doubt it," said Bart Melek, senior economist at BMO Capital Markets. "It is a fundamentally different market. The structure is different."

U.S. consumers had to ride an upswing in interest rates from 1% in 2003 to 5.25% today, a much more volatile ride than that experienced by Canadian consumers.

At the same time, U.S. loan requirements -- which included 0% downpayments in some cases -- were far looser. And lastly, the Canadian economy is in better shape.

But there's at least one important factor Canada shares with the United States: overvaluation. House prices here have risen to a point where BCA Research believes they are 28% overvalued, based on comparisons with gross domestic product and competing assets, just as house prices were once widely believed to be overvalued in the United States.

With U.S. prices now coming down, it's not hard to envision a similar price-chop here. Few see it now, but that's the best time to prepare yourself. From National Post article dberman@nationalpost.com David Berman, Financial Post

See recent market trends in the GTA

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, house trends, housing prices, national prices, resources

Read more!

Strong Start to Spring Real Estate Market in the GTA

Strong start to GTA real estate spring market

April 4, 2007 -- Strong resale housing activity in March got the spring market off to a healthy start, Toronto Real Estate Board President Dorothy Mason announced today. A total of 8,518 transactions took place in the month, nearly on par with the 8,707 sales reported last March.

“The market is in great shape, and we’re seeing very strong results on a consistent basis,” Mrs. Mason said. “So far 2007 is slightly ahead of last year’s sales pace, and we’re right on track for another solid year.”

In Scarborough’s West Hill neighbourhood (E10), strong sales of detached homes led to an overall sales increase of 27 per cent compared to March 2006.

Etobicoke’s Mimico / New Toronto neighbourhood (W06) saw transactions increase by 45 per cent compared to last March, fueled by strong detached home and condo apartment activity.

A jump in condominium activity in North York Centre (C14) helped overall sales to a 14 per cent increase compared to March of a year ago.

Overall sales in Thornhill (N02) increased by 16 per cent compared to last March, led by detached home sales.

“The GTA continues to have strong employment numbers and a healthy economy,” Mrs. Mason added.

“Housing activity is solid and prices are steadily on the rise, so it remains an excellent time to be in the market.”

Read more about the real estate market and see prices

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: house trends, housing prices, Real Estate Market, Toronto Market Watch, TREB average prices toronto 2006 2007, TREB real estate

Read more!

Healthy Spring Market Ahead - RE/MAX forcast

Re/Max forecasts heated spring market Mar 21, 2007

Higher housing values, tight inventory levels, and all-out bidding wars have yet to deter first-time buyers in major Canadian centres this year, says a new report by Re/Max.

“Buyers are finding the means necessary to enter the market, even in the western provinces, where double-digit price gains have been reported and sales to listings ratios hover above the 80 per cent mark,” says Elton Ash, regional executive vice-president, Re/Max of Western Canada. “Purchasers simply refuse to be priced out of the market, even though household income has not kept pace with housing appreciation. Something’s got to give – and the trends identified in this report show it’s the how, what, where and when of the equation.”

The Re/Max Affordability Report, which highlights first-time buying activity and trends in 13 housing markets across the country, says that substantial price increases have had little impact on buyer intentions. The greatest year-over-year price appreciation is in Edmonton, Calgary, Saskatoon and Kelowna, where averages rose 52, 29, 26, and 23 per cent respectively. Average price in the country’s most expensive market – Greater Vancouver - has jumped 11 per cent, topping the half million-dollar mark.

While prices in these markets may now seem costly, entry-level product such as condominiums can start at half the average price, says Re/Max.

Condominiums now represent just under one in every two sales in markets like Vancouver and Victoria. In Edmonton, Calgary, and the Greater Toronto Area, close to one in every three sales involve a condominium apartment or town home. In smaller markets like Saskatoon, Regina, and Winnipeg, condominiums are gaining momentum. Condominium sales represent approximately 12 per cent of total residential sales in Halifax-Dartmouth and Ottawa, says the report.

“Low interest rates and solid economic performance in most major Canadian centres have also played a substantial role in providing purchasers with the confidence to go out and buy their first home,” says Michael Polzler, executive vice-president and regional director, Re/Max Ontario-Atlantic Canada. “Yet, in some centres, there are other motivating factors at play. Price increases, for example, are a reality in the marketplace. One year can set you back – from location to house size – and your dollar just doesn’t have the same purchasing power.”

Re/Max says innovative financing has allowed a growing number of first-time buyers to enter the marketplace. New mortgage products with longer amortization periods are helping to make mortgage payments easier to carry, the company says.

The offloading of family wealth and inheritance are also factors influencing home-buying activity, says Ash. Some first-time buyers are digging into RRSPs and borrowing money from parents, while others are looking to offset carrying costs through in-law suites, now factored into debt service ratios by a growing number of lending institutions.

“Despite a decade of year-over-year price increases, compounded by challenging market conditions this year, entry-level buyers continue to be a driving force in real estate,” says Polzler. He says, “Their undaunted enthusiasm is expected to translate into sales at or ahead of last year’s record levels in the spring.”

This makes sense, Read more about the spring market cycle

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying, buying strategy, house trends, housing prices, resources

Read more!

Housing Affordability and Home Sales Across Canada - RE/MAX 2007 Report

First-time buyer tenacity boosts home sales despite further erosion of affordability, says RE/MAX

Heated Spring real estate market forecast from coast-to-coast.
Higher housing values, tight inventory levels, and all-out bidding wars have yet to deter first-time buyers in their quest to realize homeownership in major Canadian centres this year, according to a report released today by RE/MAX.

Despite a decade of year-over-year price increases, compounded by challenging market conditions this year, entry-level buyers continue to be a driving force in real estate. Their undaunted enthusiasm is expected to translate into sales at or ahead of last year’s record levels in the Spring.

The RE/MAX Affordability Report, which highlights first-time buying activity and trends in 13 housing markets across the country, found that substantial price increases have had little impact on buyer intentions. The greatest year-over-year price appreciation occurred in Edmonton, Calgary, Saskatoon, and Kelowna, where averages rose 52, 29, 26, and 23 per cent respectively. Average price in the country’s most expensive market – Greater Vancouver – has jumped 11 per cent, topping the half million-dollar mark. While prices in these markets may now seem costly, entry-level product such as condominiums can start at half the average price.

Buyers are finding the means necessary to enter the market, even in the western provinces, where double-digit price gains have been reported and sales to listings ratios hover above the 80 per cent mark. Purchasers simply refuse to be priced out of the market, even though household income has not kept pace with housing appreciation. Something’s got to give -- and the trends identified in this report show it’s the how, what, where and when of the equation.

Case in point is the surge in condominium sales from coast-to-coast. Affordability and accessibility have made the condominium lifestyle a popular choice. Condominiums now represent just under one in every two sales in markets like Vancouver and Victoria. In Edmonton, Calgary, and the Greater Toronto Area, close to one in every three sales involve a condominium apartment or town home. In smaller markets like Saskatoon, Regina, and Winnipeg, condominiums are gaining momentum. Condominium sales represent approximately 12 per cent of total residential sales in Halifax-Dartmouth and Ottawa.

Low interest rates and solid economic performance in most major Canadian centres have also played a substantial role in providing purchasers with the confidence to go out and buy their first home. Yet, in some centers, there are other motivating factors at play. Price increases, for example, are a reality in the marketplace. One year can set you back – from location to house size – and your dollar just doesn’t have the same purchasing power.

Yet, buyers have found inventive ways to address that as well. Innovative financing has allowed a growing number of first-time buyers to enter the marketplace. With most prepared to up the ante to realize “the dream of homeownership”, unique new mortgage products with longer amortization periods are helping to make mortgage payments easier to carry.

The offloading of family wealth and inheritance are also factors influencing the up swell in home-buying activity. Some first-time buyers are digging into RRSPs and borrowing money from parents, while others are looking to offset carrying costs through in-law suites, now factored into debt service ratios by a growing number of lending institutions.

You may use this link to download and read the entire report

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying, first time buyers, house trends, housing prices, national prices, Real Estate Market, remax

Read more!

Mississauga Sales are steady for February

Sales hold steady in February

According to statistics released by the Mississauga Real Estate Board, MLS® home sales in the region served by the Board held steady this February compared to the same month last year. Activity also posted strong double-digit gains compared to the previous month.

A total of 836 homes were sold in the area served by the Board in February 2007 – 25 per cent more than in January and two per cent less than in February 2006. The value of all homes sold in February was $272,300,872.

The average price of a home sold in the region served by the Mississauga Real Estate Board this February was $325,719. This is three per cent less than the average price of $335,252 posted in January, and four per cent more than the $314,470 posted last February. The Board cautions that the average residential price is a useful figure only for establishing trends and comparisons over a period of time. It does not indicate an actual price for a home due to the wide selection of housing available in the area.

There were 1,477 residential properties added to the local MLS® system in Mississauga this February – four per cent less than were added at the end of February 2006. There were also 2,360 active MLS® listings posted by Mississauga REALTORS® at the end of the month.

About the Mississauga Real Estate Board
Established in 1954, the Mississauga Real Estate Board represents approximately 1,500 real estate Brokers and salespersons from Mississauga and surrounding areas. Members of the Board may use the REALTOR® trademark, which identifies them as real estate professionals who subscribe to a strict Code of Ethics. Advertisements of local MLS® property listings and information about the services provided by a REALTOR® can be found at www.mreb.ca .

I've included the Disclaimer from the original article, just in case someone wishes to take me to task on the information presented above. Thank you, Mark
--------------------------------------------------------------------------------
The information contained in this report has been prepared by The Canadian Real Estate Association, in co-operation with the Mississauga Real Estate Board. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither The Canadian Real Estate Association nor the Mississauga Real Estate Board assumes any responsibility or liability. Copyright© 2006 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

Mississauga Real Estate, Homes, TREB & MLS Blog by Mark Argentino

Tuesday, February 26, 2008

Downtown Toronto Taxes are highest in Country!

Thursday, February 21, 2008

Canada's Housing Market Outlook for 2008

Wednesday, February 20, 2008

More signals that our real estate market is cooling a little

Thursday, February 07, 2008

FEBRUARY GTA Real Estate Report - Strength in central Toronto drives the market to a healthy start!

Monday, February 04, 2008

Condo prices on the rise in Toronto and GTA

Friday, January 25, 2008

USA Real Estate Round Up for 2007 from NAR

Wednesday, January 23, 2008

RE/MAX Reports Condominium appreciation outpaced single-detached housing

Thursday, January 17, 2008

Canadian Home Sales: House of the Rising Price

Saturday, January 12, 2008

Real Estate Market Update from New Home Building Permit Perspective

Wednesday, January 02, 2008

2008 Predictions - How close were the 2007 Real Estate Predictions versus actual and my Real Estate Predictions for 2008

Monday, December 17, 2007

Canadian Resale Housing Market up 11.6% year over year - Good news for us all!

Wednesday, December 12, 2007

Alberta Prices are changing - Canadian Housing Market Commentary

Monday, December 10, 2007

RBC report that Canadian Economy continues on a solid growth path

Wednesday, December 05, 2007

TREB Toronto Real Estate Board reports that November was BestEver, Best Year Ever!

Tuesday, November 20, 2007

It was the highest October on record for MLS® home sales

Monday, November 19, 2007

Average house prices anticipated to rise by 9.5 per cent nationally

Thursday, November 15, 2007

RE/MAX reports that Condominiums have achieved unprecedented favour among Canadian home-buyers

Condominiums achieve unprecedented favour among Canadian homebuyers, says RE/MAX

Saturday, November 10, 2007

Housing Affordability - Rising price-to-rent ratios partly justified

Tuesday, November 06, 2007

TREB Home sales up 15 percent, price up 11 per cent year over year

Tuesday, October 30, 2007

Vancouver has the most expensive housing market in Canada

Monday, October 29, 2007

Positive CMHC Housing Market Outlook for 2007/2008

Friday, October 26, 2007

Celebrating 20 Years in Real Estate!

Thursday, October 25, 2007

The Boomers are coming - watch as affordability crunch fuel highrise sales

Wednesday, October 24, 2007

CMHC's new snapshot of Canadian housing

Monday, October 22, 2007

Housing Market Trends and information for buyers and sellers

Wednesday, October 17, 2007

Slow and steady growth forecast for residential real estate in major Canadian markets in 2008, says RE/MAX

Thursday, October 11, 2007

TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

Wednesday, October 03, 2007

TD Canada Trust predictions for remainder of year

Friday, September 28, 2007

Lots of Lots for Sale

Tuesday, September 18, 2007

RBC Reports that Housing affordability hit on all sides

Sunday, September 09, 2007

August sets the stage for a strong autumn market

Wednesday, September 05, 2007

Luxury sales continue to rise across the country

Tuesday, August 28, 2007

US Price Trends Improve, Existing-Home Sales Lag

Wednesday, August 15, 2007

Where is the market heading? In light of increased mortgage interest rates.

Wednesday, August 08, 2007

TREB Real Estate Market Continues to set Fast Pace

Thursday, July 26, 2007

Mortgage Rates to Remain Historically Low

Wednesday, July 25, 2007

Canada’s inflation reprieve likely to be short-lived

Sunday, July 15, 2007

Canadian and International Monetary comments on interest rates and inflation

Tuesday, July 10, 2007

Canadian National Housing prices since 1990 to 2005